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4. An entrepreneur makes a part used in the auto industry that he sells for $2.65 each Yearly sales of
this part have been 20,400 a year for the last three years. The customer has cut production and has
reduced its purchase of these parts by 35 percent. How much yearly revenue will the entrepreneur
lose as a result?

Respuesta :

Samawati

Answer:

$18,921

Explanation:

The price per part is $2.65.

yearly sales have been 20,400 units.

Production has been cut by 35%; the entrepreneur will sell less than 20,400 units.

new sales volume will 20,400- (35% of 20,400)

=20,400 units- 7,140 units

=13, 260 units

Sales will decrease by 7,140 units. in Monetary value, the reduction will be

=7140units  x $2.65

=$18,921

Revenue lost = $18,921

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