Larson, Inc., manufactures backpacks. Last year, it sold 75,000 of its basic model for $20 per unit. The company estimates that this volume represents a 25 percent share of the current market. The market is expected to increase by 10 percent next year. Marketing specialists have determined that as a result of new competition, the companys market share will fall to 20 percent (of this larger market). Due to changes in prices, the new price for the backpacks will be $17 per unit. This new price is expected to be in line with the competition and have no effect on the volume estimates.

Required:

Estimate Larsons sales revenues from this model of backpack for the coming year.

Sales revenue