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Sherry and John Enterprises are using the kaizen approach to budgeting for 2018. The budgeted income statement for January 2018 is as follows: Sales (168,000
Sherry and John Enterprises are using the kaizen approach to budgeting for 2018. The budgeted income statement for January 2018 is as follows: Sales (168,000 units) $1,060,000 Less: Cost of goods sold 620,000 Gross margin 440,000 Operating expenses 390,000 (includes $60,000 of fixed costs) Operating income $50,000 Under the kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 3% per month. What is budgeted gross margin for March 2018?
$413,996
$466,796
$426,800
$476,642
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