The Erie Bay Liner Company Has Sales of $2

question 97

Multiple Choice

The Erie Bay Liner Company has sales of $2.4 million and operating expenses of $180,000. The firm uses the percentage of sales approach and estimates next year's sales at $2.5 million. What are the operating expenses expected to be next year?

• A)$171,231
• B)$175,123
• C)$179,400
• D)$182,549
• E)$187,500

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Definitions:

Expected Total Return

The sum of income and capital appreciation that an investment is anticipated to earn over a specific period.

Constant

A value that remains unchanged throughout the course of a calculation or process.

Expected Dividend

Expected Dividend is the forecasted payment of a portion of a company's earnings to its shareholders, typically expressed as an amount per share.

Proxy

A document authorizing a person to vote on another's behalf in a corporate or other formal meeting setting.