QUESTION 10

McKinnon Inc. reports in its 2013 annual report 10-K, sales of $2,045 million and cost of goods sold of $818 million. For next year, you project that sales will grow by 5% and that the percentage of cost of goods sold to sales will be 2 percentage points higher than in 2013. Projected cost of goods sold for 2014 will be ________.

		$861 million
		$859 million
		There is not enough information to determine the amount.
		$834 million
		$902 million