Bunbury Doughnuts Had Sales of $200 Million in 2016

question 28

Multiple Choice

Bunbury Doughnuts had sales of $200 million in 2016. Its cost of sales was $160 million. If sales are expected to grow at 10% in 2017, compute the forecasted costs using the per cent of sales method.

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

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Definitions:

Water Transport

The movement of water and nutrients through a plant, from the roots to the leaves, via xylem and phloem.

Monocotyledon

A group of flowering plants whose seeds typically contain one embryonic leaf, or cotyledon.

Eudicotyledon

A major group of flowering plants characterized by the presence of two seed leaves, or cotyledons, upon germination.

Vascular Bundles

Strands of specialized tissue in plants that contain xylem and phloem for the transportation of water, nutrients, and sugars.