You are a junior analyst and you have been asked to forecast sales for Lululemon for 2012. At the end of 2011, Lululemon operated 159 corporate-owned stores in North America 46 in Canada and 113 in the United States). Lululemon plans to open 28 new stores in 2012. The average store has 2,665 square feet of retail space. In 2010 Lululemon stores generated sales per square foot of $1,716. In 2011, sales per square foot rose to $2,009.

The growth rate of same stores sales is expected to slow in 2012 to half of the growth rate from 2010-2011. What will total revenues be if the new stores only generate half of the sales of existing stores?

One-half of the growth rate from 2010 to 2011 will be:

The forecast sales per square foot for 2012 is:

Sales from existing stores in 2012 will be:

Sales from new stores in 2012 will be:

Total sales will be :