Advanced Enterprises Reports Year-End Information from 2018 as Follows

question 50

Multiple Choice

Advanced Enterprises reports year-end information from 2018 as follows:

Advanced is developing the 2019 budget. In 2019 the company would like to increase selling prices by 12.5%, and as a result expects a decrease in sales volume of 9%. 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 cost of goods sold for 2019?

• A) $723,375
• B) $585,130
• C) $700,870
• D) $643,000

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Definitions:

Working Mother

A mother who engages in employment outside the home in addition to her family responsibilities.

Better-Adjusted Children

Children who have adapted well to their environment and situations, often displaying good social and emotional development.

Stay-At-Home Mother

A mother who chooses to stay at home to raise their children rather than pursue employment outside the home.

Later-Born Children

Siblings who are born after the first child in a family, often discussed in studies of birth order effects.