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Fat Tire Automobile Company reported sales of $ 8 0 1 , 7 5 0 . 0 0 in 2 0 2 3 . The

Fat Tire Automobile Company reported sales of $801,750.00 in 2023. The company is not happy with this figure and decides to hire a marketing agency to create advertisements for $90,540.00. The marketing agency promises that sales will grow by 15.00% in 2024. Fat Tire expects cost of goods to remain at 30.00% of sales, and depreciation expense will remain at $25,000.00. Selling and administrative expense was $60,000 in 2023. The cost of the marketing agency will be added to this expense for 2024.

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