A store sold 3,000 tops and 2,500 pants last quarter. They plan to increase marketing by $5,000 in the next quarter with the expectation of increasing sales by 10%. Assuming no seasonal change in demand, what are the forecasted unit sales for tops and pants?

a. Tops: 3,500 and Pants: 3,000

b. Tops: 3,250 and Pants: 2,670

c. Tops: 2,750 and Pants: 3,300

d. Tops: 3,300 and Pants: 2,750

Option (d) Tops: 3,300 and Pants: 2,750

Explanation:

Data provided in the question:

Tops sold last quarter = 3,000

Pants sold last quarter = 2,500

Increase in marketing = $5,000

Expected increase in sales = 10%

Now,

Forecasted unit sales for tops

= Tops sold last quarter + Expected increase in sales

= 3,000 + 10% of 3,000

= 3,000 + 300

= 3,300

Forecasted unit sales for pants

= Pants sold last quarter + Expected increase in sales

= 2,500 + 10% of 2,500

= 2,500 + 250

= 2,750

Hence,

Option (d) Tops: 3,300 and Pants: 2,750