Answer the following questions using the information below:
Kramer Enterprises reports year-end information from 2010 as follows:
Kramer is developing the 2011 budget. In 2011 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 cost of goods sold for 2011?

Question

Answer the following questions using the information below:
Kramer Enterprises reports year-end information from 2010 as follows:
    Kramer is developing the 2011 budget. In 2011 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 cost of goods sold for 2011?

Quizplus · Accepted Answer

In order to calculate the budgeted cost of goods sold for 2011, we need the cost of goods sold for 2010. Unfortunately, that information is not given. Therefore, we cannot say for certain what the budgeted cost of goods sold for 2011 will be.

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