Answer the Following Questions Using the Information Below:
Violet Sales

question 14

Multiple Choice

Answer the following questions using the information below:
Violet Sales Corp, reports the year-end information from 2016 as follows:
$$\begin{array} { l r } \text { Sales (35,000 units) } & \$ 280,000 \\\text { Cost of goods sold } & 105,000 \\ \text { Gross margin } & 175,000 \\\text { Operating expenses } & 150,000 \\\text { Operating income } & \$ 25,000 \\\hline\end{array}$$ Violet is developing the 2016 budget. In 2016 the company would like to increase selling prices by 3.5%, and as a result expects a decrease in sales volume of 15%. All other operating expenses are expected to remain constant. Assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost.
-What is budgeted cost of goods sold for 2016?

• A) $89,250
• B) $98,250
• C) $15,750
• D) $257,040

Understand the components included under Workers' Compensation insurance.

Explain the preauthorization process and its importance in medical billing.

Distinguish between preauthorization and predetermination.

Identify correct data entry practices for medical billing programs.