Calgary Doughnuts Had Sales of $200 Million in 2007

question 42

Multiple Choice

Calgary Doughnuts had sales of $200 million in 2007. Its cost of sales were $160 million. If sales are expected to grow at 10% in 2008, compute the forecasted costs using the percent of sales method.

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