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Author Question: Advanced Enterprises reports year-end information from 2018 as follows: Sales (160,250 ... (Read 156 times)

mspears3

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on: Mar 6, 2021
Advanced Enterprises reports year-end information from 2018 as follows:

Sales (160,250 units)$968,000
Cost of goods sold 641,000
Gross margin327,000
Operating expenses263,000
Operating income$64,000

Advanced is developing the 2019 budget. In 2019 the company would like to increase selling prices by 14.5%, and as a result expects a decrease in sales volume of 9%. 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.

Should Advanced increase the selling price in 2019?
◦ Yes, because operating income increases for 2019.
◦ Yes, because sales revenue increases for 2019.
◦ No, because sales volume decreases for 2019.
◦ No, because gross margin decreases for 2019.
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by mspears3 on Mar 6, 2021

rachel

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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mspears3

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it

chjcharjto14

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Reply 3 on: Yesterday
Excellent

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