Answer the following questions using the information below:
Kramer Enterprises reports year-end information from 2014 as follows:
Kramer is developing the 2015 budget. In 2015 the company would like to increase selling prices by 8%, and as a result expects a decrease in sales volume of 10%. All other operating expenses are expected to remain constant. Assume that COGS is a variable cost and that operating expenses are a fixed cost.
-What is budgeted sales for 2015?
A) $933,120
B) $864,000
C) $1,036,800
D) $1,066,666
Correct Answer:
Verified
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