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1) ABC Enterprises reports year-end information from 2017 as follows:
1) ABC Enterprises reports year-end information from 2017 as follows:
Sales(100,000 units) $2,000,000
COGsold 75,000
Gross Margin 1,925,000
Operating Expense 500,000
Operating Income 1,425,000
ABC is developing the 2018 budget. They would like to increase their selling price by 5% and as a result they expect a decrease in sales volume sold of 10%. 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.
a) What is budgeted sales for 2018?
b) What is budgeted cost of goods sold for 2018?
