Question: Consider the following condensed Income Statement: 2015 Sales COGS $8,000,000 6,500,000 Gross Profit 1,500,000 Sales growth in 2016 is expected to be 15%. If COGS is assumed to vary directly with sales, then Gross Profit for 2016 will be

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter5: Evaluating Operating And Financial Performance
Section: Chapter Questions
Problem 7EP
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Question:
Consider the following condensed Income Statement:
2015
Sales
COGS
$8,000,000
6,500,000
Gross Profit 1,500,000
Sales growth in 2016 is expected to be 15%. If COGS is assumed
to vary directly with sales, then Gross Profit for 2016 will be
Transcribed Image Text:Question: Consider the following condensed Income Statement: 2015 Sales COGS $8,000,000 6,500,000 Gross Profit 1,500,000 Sales growth in 2016 is expected to be 15%. If COGS is assumed to vary directly with sales, then Gross Profit for 2016 will be
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