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Violet Sales Corp, reports the year-end information from 2018 as follows: Sales (35,625 units) Cost of goods sold Gross margin Operating expenses Operating income $285.000
Violet Sales Corp, reports the year-end information from 2018 as follows: Sales (35,625 units) Cost of goods sold Gross margin Operating expenses Operating income $285.000 118.000 167,000 157,000 $10,000 Violet is developing the 2019 budget. In 2019 the company would like to increase selling prices by 3.5%, and as a result expects a decrease in sales volume of 13%. 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. Should Violet increase the selling price in 2019? O A. Yes, because sales revenue increases for 2019. B. Yes, because gross margin increases for 2019. O c. No, because sales volume decreases for 2019. OD. No, because operating income decreases for 2019
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