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(TCO 2) Katie Enterprises reports the year-end information from
20X8 as follows: Sales (70,000 units) $560,000; Cost of goods sold
210,000; Gross margin 350,000; Operating expenses 200,000;
Operating income $150,000. Katie is developing the 20X9 budget. In
20X9, the company would like to increase selling prices by 4%, 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 20X9?
9.Question :
(TCO 2) Hester Company budgets on an annual basis for its fiscal
year. The following beginning and ending inventory levels (in units)
are planned for the fiscal year of July 1, 2008, through June 30, 2009.
July 1, 2008 June 30, 2009
Raw material (note) 40,000 10,000
Work in process 8,000 8,000
Finished goods 30,000 5,000
(note) Three units of raw material are needed to produce each unit of
finished product.
If Hester Company plans to sell 600,000 units during the 2008-2009
fiscal year, the number of units it would have to manufacture during
the year would be
10.
Question :
(TCO 2) Information pertaining to Brenton Corporation's sales
revenue is presented in the following table:
February March April