Calgary Doughnuts Had Sales of $200 Million in 2015

question 70

Multiple Choice

Calgary Doughnuts had sales of $200 million in 2015.Its cost of sales were $160 million.If sales are expected to grow at 10% in 2016,compute the forecasted costs using the percent of sales method.

• A)$160 million
• B)$170 million
• C)$173 million
• D)$176 million
• E)$180 million

---

Definitions:

Systems Theory

A conceptual framework that examines entities as complex systems made up of interrelated components, suggesting that understanding the whole system requires looking at the interconnections and processes within it.

Leon Festinger

A psychologist known for his theory of cognitive dissonance, which explores how people strive for internal consistency between their beliefs and behaviors.

Group Cohesion

The strength and solidarity of the bonds among group members, contributing to the group's unity, commitment, and capacity to act as a single entity.

Task Cohesion

The degree to which group members work together towards a common goal and the level of commitment to achieving that goal.