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Author Question: Violet Sales Corp, reports the year-end information from 2018 as follows: Sales (35,625 ... (Read 213 times)

cabate

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on: Mar 6, 2021
Violet Sales Corp, reports the year-end information from 2018 as follows:

Sales (35,625 units)$285,000
Cost of goods sold116,000
Gross margin169,000
Operating expenses  154,000
Operating income$15,000

Violet is developing the 2019 budget. In 2019 the company would like to increase selling prices by 3.5%, and as a result expects a decrease in sales volume of 14%. 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 Violet increase the selling price in 2019?
◦ Yes, because sales revenue increases for 2019.
◦ Yes, because gross margin increases for 2019.
◦ No, because sales volume decreases for 2019.
◦ No, because operating income decreases for 2019.
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by cabate on Mar 6, 2021

shaquita

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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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cabate

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Reply 2 on: Mar 6, 2021
Excellent

irishcancer18

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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