Answer the Following Questions Using the Information Below:
Newcastle Enterprises

question 94

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 the budgeted cost of goods sold for 2019?

• A)$333 000
• B)$370 000
• C)$218 400
• D)$196 560

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Definitions:

Promissory Estoppel

A legal principle that prevents a promisor from retracting a promise when the promisee has reasonably relied on the promise to their detriment.

Firm Offer

A firm offer is a binding commitment made by a seller to sell goods or services at a set price for a specified period, often without requiring consideration.

Doctrine

A set of principles or beliefs, especially one laid down by a religion or government, that guides actions and decisions.

Firm Offer

An offer in contract law that remains valid for a certain period of time and cannot be revoked during that period.