The Variable Speed Company manufactures a line of high quality tools. The company sold 1,000,000 hammers at a price of $4 per unit last year. The company estimates that this volume represents a 20% share of the current hammers market. The market is expected to increase by 5%. Marketing specialists have determined that, as a result of a new advertising campaign and packaging, the company will increase its share of this larger market to 24%. Due to changes in prices, the new price for the hammer will be $4.30 per unit. This new price is expected to be in line with the competition and have no effect on the volume estimates. What are the estimated sales revenues in the coming year

Estimated sales revenue next year =$ 5,418,000.

Explanation:

Current market size  = Company share/percentage of market share

= 1,000,000./0.2

=5,000,000 units

New market size with 5% increase

= 105%× current market size

=105% × 5,000,000

=5,250,000 units

Company new if it will now accounts for 24% of the market size

Company new market share = 24% × New market size

  = 24%× 5,250,000    

=  1,260,000  units

    Estimated sales revenue next year

=  Price per unit × new market share

= $4.30 per unit. ×  1,260,000

=$ 5,418,000.0

answer; only identify and interpret trends in the marketplace;

answer(d) the growth of consumption is likely to remain sluggish even as the economy begins to recover.;