ayton Inc. reports in its Year 7 annual report, sales of $7,362 million and cost of goods sold of $2,945 million. For next year,

Question

3 years ago

8

ayton Inc. reports in its Year 7 annual report, sales of $7,362 million and cost of goods sold of $2,945 million. For next year,

you project that sales will grow by 3% and that cost of goods sold percentage will be 1 percentage point higher. Projected cost of goods sold for Year 8 will be:

Business

1 answer:

maks197457 [2] · Answer 1 · 2022-09-06T04:20:35+03:00

maks197457 [2]3 years ago

3 0

Answer: $2,974.45 million

Explanation:

Cost of goods sold for Year 7 = $2,945 million

Cost of goods sold is expected to increase by 1%.

Cost of goods sold in Year 8 will be:

= 2,945 * (1 + 1%)

= $2,974.45 million