Answer the Following Questions Using the Information Below:
Sherry and John

question 53

Multiple Choice

Answer the following questions using the information below:
Sherry and John Enterprises are using the kaizen approach to budgeting for 2015. The budgeted income statement for January 2015 is as follows:
$$\begin{array} { l r } \text { Sales ( } 168,000 \text { units) } & \$ 1,000,000 \\\text { Less: Cost of goods sold } & 600,000 \\\text { Gross margin } & 400,000 \\\text { Operating expenses } & 300,000 \\\text { (includes } \$ 50,000 \text { of fixed costs) } & \\\text { Operating income } & \$ 100,000 \\\hline\end{array}$$ Under the kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 1% per month.
-What is budgeted gross margin for March 2015?

• A) $392,040
• B) $396,000
• C) $408,040
• D) $411,940

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Definitions:

Collectivist Cultures

Societies that prioritize the group over individual desires or identities, emphasizing family and community cohesion.

Individualist Cultures

Societies that prioritize the needs and rights of the individual over the group, often emphasizing personal achievement and independence.

Signs Of Humility

Behaviors or attitudes that show a modest or low view of one's own importance; often characterized by a lack of ego.

Defer To Others

The act of submitting or yielding to the judgment, opinion, or preference of another individual or group.