Calgary Doughnuts Had Sales of $100 Million in 2007

question 18

Multiple Choice

Calgary Doughnuts had sales of $100 million in 2007. Its cost of sales were $70 million. If sales are expected to grow at 20% in 2008, compute the forecasted costs using the percent of sales method.

• A) $80 million
• B) $84 million
• C) $88 million
• D) $96 million

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Definitions:

Revocation

The act of officially withdrawing, cancelling, or reversing a decision, offer, or statement.

Counteroffer

A response to an original offer which modifies conditions or proposes new terms, effectively rejecting the initial offer and becoming a new proposal in the negotiation process.

Lapse Of Time

The expiration of a specified duration, after which legal claims may be void or rights may expire.

Valid Offer

A proposal made by one party to another intended to create a legally binding agreement when accepted.