Question

Bernie Company sells buttons to fabric stores. Sales are expected to be $2,046,299 in January, $2,484,001 in February and $3,162,122 in March. Bernie Company sets their prices so that they earn an average 46% gross profit on sales revenue. What is budgeted cost of goods sold for February? Round your answer to the nearest whole number. Don't enter commas or dollar signs.

Answer 1

Answer:

$1,701,371

Explanation:

Gross Profit = Sales - Cost of Sales

therefore,

In percentage this equation can be expressed according to the Company policy as :

46 % = 146 % - 100%

Cost of Sales = 100/146 x $2,484,001 = $1,701,371

Conclusion :

Budgeted cost of goods sold for February is $1,701,371