Answer the Following Questions Using the Information Below:
Newcastle Enterprises

question 53

Multiple Choice

Answer the following questions using the information below:
Newcastle Enterprises reports the year-end information from 2018 as follows:
$\begin{array}{lr}\text { Sales (70 000 units) } & \$ 720000 \\\text { Cost of goods sold } & \underline{370000} \\& \\\text { Gross margin } & 350000 \\\text { Operating expenses } & \underline{200000} \\& \\\text { Operating profit } & \underline{ \$ 150000}\end{array}$
Newcastle is developing the 2019 budget.In 2019 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 sales for 2019?

• A)$504 000
• B)$673 920
• C)$582 400
• D)$720 000

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