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Katie Enterprises THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 34 AND 35. Katie Enterprises reports the year-end information from 20X4 as follows: Sales (70,000 units) $560,000
Katie Enterprises
THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 34 AND 35.
Katie Enterprises reports the year-end information from 20X4 as follows:
Sales (70,000 units) | $560,000 |
---|---|
Cost of goods sold | 210,000 |
Gross margin | 350,000 |
Operating expenses | 200,000 |
Operating income | $150,000 |
Katie is developing the 20X5 budget. In 20X5 the company would like to increase selling prices by 4%, and as a result expects a decrease in sales volume of 10%. All other operating expenses are expected to remain constant. Assume that COGS is a variable cost and that operating expenses are a fixed cost.
What is budgeted cost of goods sold for 20X5?
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