Estimate Sales Revenues: Drexel, Burned, Limbear is a large securities dealer. Last year, the company made 55,000 trades with an average commission of $225 per trade. Smaller investors are abandoning the market, which is expected to reduce marketwide volume by 12 percent for the coming year. Drexel expects that its volume generally changes with the market. However, in addition to market factors, Drexel expects an additional 10 percent decline in the number of trades due to unfavorable publicity. Offsetting these factors is the observation that the average commission per trade is likely to increase by 26 percent because trades are expected to be larger in the coming year.

Required: Estimate the commission revenues from the coming year.