Advanced Enterprises reports

yearend

information from 2018 as follows:

Sales (160,750 units)	$969,000
Cost of goods sold	643,000
Gross margin	326,000
Operating expenses	261,000
Operating income	$65,000

Advanced is developing the 2019 budget. In 2019 the company would like to increase selling prices by 12.5%,

and as a result expects a decrease in sales volume of 99%.

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 sales for 2019?

A. $881,790

B. $969,000

C. $1,090,125

D. $ 992,014