Question
Violet Sales Corp, reports the year-end information from 2019 as follows: Violet is developing the 2020 budget. In 2020 the company would like to increase
Violet Sales Corp, reports the year-end information from 2019 as follows:
Violet is developing the 2020 budget. In 2020 the company would like to increase selling prices by 3.5%, and as a result expects a decrease in sales volume of 14%. 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 2020? (Round interim calculations to the nearest cent and the final answer to the nearest dollar)
$335,092 | ||
$293,940 | ||
$284,001 | ||
$252,788 |
Sales (35,500 units) $284,000
Cost of goods sold 105,000
Gross margin 179,000
Operating expenses 152,000
Operating income $27,000
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