Advanced Enterprises reports year−end information from 2019 as​ follows: Sales ​(161,000 ​units) $965,000 Cost of goods sold ​(644,000​) Gross margin 321,000 Operating expenses ​(266,000​) Operating income $55,000 Advanced is developing the 2020 budget. In 2020 the company would like to increase selling prices by 14.5​%, and as a result expects a decrease in sales volume of 11​%. 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 Advanced increase the selling price in​ 2020?

Advanced should increase the selling price in​ 2020.

Explanation:

Current selling price = Current sales value / Current sales volume = $965,000 / 161,000 = $5.99

Expected selling price = Current selling price * (100% + Expected percentage increase in selling price) = $5.99 * (100% + 14.5%) = $6.86

Expected sales volume = Current sales volume * (100% - Expected percentage increase in sales volume) = 161,000 * (100% - 11%) = 143,290 units

Expected sales value = Expected selling price * Expected sales volume = $6.86 * 143,290 = $982,762

Cost of goods sold per unit = Current cost of goods sold / Current sales volume = $644,000 / 161,000 = $4.00

Expected cost of goods sold = Expected sales volume * Cost of goods sold per unit = 143,290 * $4.00 =$ 573,160

Therefore, Advanced Enterprises expected operating income for 2020 can be computed as follows:

Details                                          $

Sales (143,290 units)             982,762

Cost of goods sold              (573,160)  

Gross margin                         409,602

Operating expenses           (266,000)  

Operating income               143,602  

Since the expected operating income of $143,602 for 2020 is greater than $55,000 operating income for 2019, Advanced should increase the selling price in​ 2020.

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.

answer loneliness;