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