Hyein Company reports year-end information from 2018 as
follows:
Sales (160,750 units)
P965,000
Cost of goods sold
643,000
Gross margin
322,000
Operating expenses
267,000
Operating income
55,000
Advanced is developing the 2019 budget. In 2019 the company
would like to increase selling prices by 12.5%, 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 cost of goods sold for 2019?