13 - 22. Estimate Sales Revenues

Stubs-R-Us is a local event ticket broker. Last year, the company sold 900,000 tickets with an average commission of $5. Because of the general economic climate, Stubs expects ticket volume to decline by 20%. In addition, employees at a local insurance company headquarters accounted for 5% of Stubs' volume. The headquarters relocated to another state and all the employees closed their accounts.

Offsetting these factors is the observation that the average commission per sale is likely to increase by 10% because the average ticket prices are expected to be larger in the coming year.

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Estimate commission revenues for Stubs-R-Us for the coming year.