Nelson Heating and Ventilating Company estimates the coming year’s sales

Nelson Heating and Ventilating Company estimates the coming year’s sales revenue based on external data. The company’s main business is new shopping mall construction, and uses the square footage of each mall as a “yardstick” for many and projections. The company does business in four Midwest states. Last year, it completed heating and ventilating systems on four shopping malls with an average square footage of 3,000,000 square feet for sales revenues of $9,600,000. Nelson is hired for one-third of the new malls in the four- state area. This coming year, nine new malls are being built with an average footage of 4,500,000 square feet. What is Nelson’s anticipated sales revenue for the coming year?

 

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