Rerun Manufacturing Company Is in the Process of Preparing Its

Rerun Manufacturing Company is in the process of preparing its 2016 budget and is anticipating the following changes: 30% increase in the number of units sold.20% increase in the direct material unit cost.15% increase in the direct labor cost per unit.10% increase in the manufacturing overhead cost per unit.14% increase in the marketing price.7% increase in the administrative expenses.Rerun does not keep any units in inventory.The composition of the cost of finished products during 2016 for materials,direct labor,and factory overhead,respectively,was in the ratio of 3:2:1.The condensed income statement for 2016 is as follows:

$$\begin{array} { | l | r | r | } \hline \text { Sales } ( 30,000 \text { units } ) & \$ 460,000 & \\\hline \text { Less sales returns } & \underline{13,500 }& \\\hline \text { Net sales } & 436,500 & \\\hline \text { Cost of Goods Sold } &\underline{ 306,000} & \\\hline \text { Gross Profit } & & \$ 130,500 \\\hline \text { Selling Expenses } & \$ 60,000 & \\\hline \text { Admin. Expenses } & 30,000 & 90,000 \\\hline \text { Net Income } & & \underline{\$ 40,500 }\\\hline\end{array}$$ What is the estimated cost of goods sold for 2016 assuming the number of units sold does not change?

A) $464,100
B) $402,900
C) $397,800
D) $357,000