Answer the Following Questions Using the Information Below:
Kramer Enterprises

question 48

Multiple Choice

Answer the following questions using the information below:
Kramer Enterprises reports year-end information from 2015 as follows:
$\begin{array}{lr}\text { Sales (160,000 units) } & \$ 960,000 \\\text { Cost of goods sold } & 640,000\\\text { Gross margin } & 320,000 \\\text { Operating expenses } & 260,000 \\\text { Operating income }&\$60,000\end{array}$ Kramer is developing the 2016 budget. In 2016 the company would like to increase selling prices by 12.5%, and as a result expects a decrease in sales volume of 9%. 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 sales for 2016?

• A) $1,080,000
• B) $1,000,000
• C) $982,800
• D) $873,600

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Definitions:

Word Salad

A jumbled or incoherent mix of words and phrases, typically seen in severe cases of mental illness like schizophrenia.

Psychosis

A mental health condition that affects the way your brain processes information, leading to a loss of contact with reality.

Anxiously

Feeling or showing worry, nervousness, or unease about something with an uncertain outcome.

Merging

The process of combining two or more entities into one, often used in the context of companies, data, or systems.