Question
Advanced Enterprises reports yearminus?end information from 2018 as? follows: Sales ?(161 comma 250161,250 ?units) $ 967 comma 000$967,000 Cost of goods sold 645 comma 000645,000
Advanced Enterprises reports
yearminus?end
information from 2018 as? follows:
Sales ?(161 comma 250161,250 ?units) | $ 967 comma 000$967,000 | |
Cost of goods sold | 645 comma 000645,000 | |
Gross margin | 322 comma 000322,000 | |
Operating expenses | 264 comma 000264,000 | |
Operating income | $ 58 comma 000$58,000 |
Advanced is developing the 2019 budget. In 2019 the company would like to increase selling prices by
12.512.5?%,
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.
Should Advanced increase the selling price in? 2019??
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