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Author Question: Advanced Enterprises reports year-end information from 2018 as follows: Sales (161,000 ... (Read 91 times)

Mr.Thesaxman

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on: Mar 6, 2021

Question 1

Explain what is meant by sensitivity analysis in budgeting, and discuss how managers might use sensitivity analysis in practice.

Question 2

Advanced Enterprises reports year-end information from 2018 as follows:

Sales (161,000 units)$961,000
Cost of goods sold 644,000
Gross margin317,000
Operating expenses264,000
Operating income$53,000

Advanced is developing the 2019 budget. In 2019 the company would like to increase selling prices by 13.5%, 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.

What is budgeted sales for 2019?
◦ $1,090,735
◦ $961,000
◦ $992,569
◦ $874,510
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by Mr.Thesaxman on Mar 6, 2021

cassie_ragen

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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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Mr.Thesaxman

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Reply 2 on: Mar 6, 2021
Excellent

debra928

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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