Calgary Doughnuts Had Sales of $100 Million in 2007

question 18

Multiple Choice

Calgary Doughnuts had sales of $100 million in 2007. Its cost of sales were $70 million. If sales are expected to grow at 20% in 2008, compute the forecasted costs using the percent of sales method.

• A) $80 million
• B) $84 million
• C) $88 million
• D) $96 million

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Definitions:

Financial Goals

Objectives, often quantifiable, set by individuals or organizations to manage their income, expenses, savings, and investments over a certain period of time.

Credit Card

A payment card issued by banks allowing the cardholder to borrow funds for purchases or cash advances, repayable with interest.

Leisure Expenses

Money spent on activities and products for relaxation, entertainment, or enjoyment outside of work or essential living costs.

ABC Method

A time management technique that helps prioritize tasks by categorizing them into three groups; A (most important), B (important), and C (least important).