Advanced Enterprises reports year- end information from 2018 as follows: Sales (161,250 units) Cost of goods sold $967,000 645,000 Gross margin 322,000 265,000 Operating expenses Operating income S57,000 Advanced is developing the 2019 budget. In 2019 the company would like to increase selling prices by 13.5%, and as a result expects a decrease in sales volume of 10%. All other operating expenses are expected to remain constant. Assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. What is budgeted cost of goods sold for 2019? OA. $709,500 OB. $580,500 OC. $732,075 OD. $645,000

Advanced Enterprises reports year- end information from 2018 as follows: Sales (161,250 units) Cost of goods sold $967,000 645,000 Gross margin 322,000 265,000 Operating expenses Operating income S57,000 Advanced is developing the 2019 budget. In 2019 the company would like to increase selling prices by 13.5%, and as a result expects a decrease in sales volume of 10%. All other operating expenses are expected to remain constant. Assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. What is budgeted cost of goods sold for 2019? OA. $709,500 OB. $580,500 OC. $732,075 OD. $645,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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