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Estimate Sales Revenues (LO 13-3) SVI is a large securities dealer. Last year, the company made 570,000 trades with an average commission of $25. Because of the general economic climate, SVI expects trade volume to decline by 10 percent. In addition, employees at a local manufacturing plant have historically constituted 10 percent of SVI's volume. The plant just closed and all employees have closed their accounts. Offsetting these factors is the observation that the average commission per trade is likely to increase by 15 percent because trades are expected to be larger in the coming year. Required: Estimate SVI's commission revenues for the coming year.
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