Given that expected sales are to be $72,600 and that is a 10% increase over last year's sales, then last year's sales must have been $66,000 ($72,600 ÷ 1.10). This means that sales increased $6,600 over last year ($72,600 ? $6,600). Units sold is expected to increase by 1,100 units. The marginal revenue per unit is the amount of increase in sales revenue divided by the amount of increase in the number of units. Dividing $6,600 by 1,100 units gives us a marginal revenue per unit of $6 ($6,600 ÷ 1,100 units).
The correct way to solve this is to calculate the amount of expected increase in sales revenue and then divide that amount of expected increase in sales revenue by the amount of expected increase in units sold. See correct answer for a full explanation.
The correct way to solve this is to calculate the amount of expected increase in sales revenue and then divide that amount of expected increase in sales revenue by the amount of expected increase in units sold. See correct answer for a full explanation.
The correct way to solve this is to calculate the amount of expected increase in sales revenue and then divide that amount of expected increase in sales revenue by the amount of expected increase in units sold. See correct answer for a full explanation.
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