Kramer Enterprises reports year-end information from 2015 as follows:

Sales (160,000 units) $960,000

Cost of goods sold 640,000

Gross margin 320,000

Operating expenses 260,000

Operating income $60,000

Kramer is developing the 2016 budget. In 2016 the company would like to increase selling prices by 12.5%, and as a result expects a decrease in sales volume of 9%. 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 2016?

Question 5 options:

$1,080,000

$1,000,000

$982,800

$873,600