Answer (A) is correct . Equipment unit sales and price are projected to increase by 6% and 10%, respectively. Hence, equipment sales are projected to be $6,996,000 ($6,000,000 for the year ended 10/31/Year 1 ¡Á 1.06 ¡Á 1.10). Maintenance contracts are projected to be increased by 6%. Hence, maintenance sales are projected to be $1,908,000 ($1,800,000 for the year ended 10/31/Year 1 ¡Á 1.06). The pro forma total net sales will therefore be $8,904,000 ($6,996,000 + $1,908,000).<
Answer (B) is incorrect because Projected total net sales for the year ended October 31, Year 1, equals $7,800,000.
Answer (C) is incorrect because The amount of $6,996,000 omits sales of maintenance contracts.
Answer (D) is incorrect because Projected equipment sales for the year ended October 31, Year 1, equals $6,000,000.
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In its pro forma income statement for the fiscal year ending October 31, Year 2, Easecom estimated that total net sales will be
