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X Company's cost of goods sold (COGS) includes direct materials, direct labor, depreciation on production equipment, and factory rent. The company's selling, general, and administrative
X Company's cost of goods sold (COGS) includes direct materials, direct labor, depreciation on production equipment, and factory rent. The company's selling, general, and administrative (SG&A) costs include sales office rent, sales staff salaries, and sales commissions. When sales volume increases by 15% in the short term, which of the following is true for the company's total COGS and total SG&A costs? (hint: DM is a variable cost and rent is a fixed cost) COGS - no change: SG&A - increase by 15% COGS = increase by 15%; SG&A increase by 15% COGS - no change: SGSA - no change COGS - increase by 15%: SGSA = no change not enough information Question 10 2.5 pts cribe Now 17 w MacBook Pro % A 2 3 $ 4 5 6 7 8 W E R T
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