Bennett distribution company, a subsidiary of a major cosmetics manufacturer Bavlon, is forecasting the zonal sales for the next year. Zone I with current yearly sales of Rs. 193.8 lakh is expected to achieve a sales growth of 7.25%; Zone II with current sales of Rs. 79.3 lakh is expected to grow by 8.2%; and Zone III with sales of Rs. 57.5 lakh is expected to increase sales by 7.15%. what is the Bennett’s expected sales growth for the next year?
Explanation:
Total sales this year = 193.8 + 79.3 + 57.5 = Rs. 330.6 lakhs
Expected sales next year = 193.8 × 1.0725 + 79.3 × 1.082 + 57.5 × 1.0715
≈ Rs. 355.26 lakhs
∴ Expected sales growth
= 355.26-330.6330.6 × 100
= 7.46%
Hence, option (a).
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