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Sta. Barbara is one of the manufacturers of a part used in the production of a popular consumer product. Sales of the consumer product in 2016 are estimated at 10,000,000 units. Sta. Barbara regularly supplies 40% of the parts used in the new products. Two part units are needed for each product unit. Aside from the new products, there is also a replacement parts market.
Over the past three years, the company has sold the following number of replacement parts:
2013 300,000
2014 330,000
2015 363,000
This trend is expected to continue. The parts are sold for P4 per piece in the new products market and P4.50 in the replacement parts market.
Problem 1: The estimated number of parts to be sold by Sta. Barbara in 2016 is
A. 4,529,300
B. 4,000,000
C. 4,399,000
D. 4,435,600
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