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Advanced Enterprises reports year-end information from 2018 as follows $967,000 Sales(1 6 1,250 units) Cost of goods sold 645,000 Gross margin 322,000 Operating expenses 265,000
Advanced Enterprises reports year-end information from 2018 as follows $967,000 Sales(1 6 1,250 units) Cost of goods sold 645,000 Gross margin 322,000 Operating expenses 265,000 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%. A other operating expenses are expected to remain constant. Assume that cost of goods sold is a variable cost and that operating expenses are a fxed cost. What is budgeted cost of goods sold for 2019? O A. $709,500 OB $580,500 C. $732.075 O D. $645,000
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