Answer the Following Questions Using the Information Below

question 78

Multiple Choice

Answer the following questions using the information below:
Brent Enterprises reports the year-end information from 2011 as follows:
Brent is developing the 2012 budget. In 2012 the company would like to increase selling prices by 4%, and as a result expects a decrease in sales volume of 10%. All other operating expenses are expected to remain constant. Assume that COGS is a variable cost and that operating expenses are a fixed cost.
-What is budgeted cost of goods sold for 2012?

• A)$94,500
• B)$98,280
• C)$109,200
• D)$105,000

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Definitions:

Exploiter

An individual or entity that takes unfair advantage of others, often in a business or economic context, to gain benefits at their expense.

MRP of Land

Marginal Revenue Product of Land denotes the additional revenue generated from the utilization of an additional unit of land, underpinning its value in production.

Supply of Land

The total quantity of available land or real estate, which is inherently fixed but can vary in usability and value due to location, zoning, and development.

Marginal Land

Land that produces little yield or economic value due to poor quality, location, or other factors, making it the least productive for agricultural use.