Answer the Following Questions Using the Information Below:
Violet Sales

question 195

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 sales for 2016?

• A) $291,200
• B) $246,330
• C) $302,400
• D) $322,000

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Definitions:

Propositional Interpretation

The process of understanding and giving meaning to different statements or propositions.

Semantic Interpretation

The process of deducing the meanings of words, sentences, or symbols within their particular context and understanding their intended message.

Additive Empathic Response

A communication strategy where the responder not only shows understanding towards the speaker's feelings but also adds their own supportive insight or emotion to the interaction.

Semantic Interpretations

An analysis process focusing on understanding the meaning of words, phrases, and sentences in a language.