Philip enterprises, distributor of compact disks(CDS),is developing its budgeted cost of goods sold for 1998.Philip has developed the following range of sales estimates and associated probabilities for the year: Philip’s cost of goods sold averages 80% of sales. t hat is the expected value of Philip’s 1998 budgeted cost of goods sold?
A. US $85,000
B. US $84,000
C. US $68,000
D. US $67,200
Answer:D
Philip enterprises, distributor of compact disks(CDS),is developing its budgeted cost of goods sold for 1998.Philip has developed the following range of sales estimates and associated probabilities for the year: Philip’s cost of goods sold averages 80% of sales. t hat is the expected value of Philip’s 1998 budgeted cost of goods sold?
A. US $85,000 B. US $84,000 C. US $68,000 D. US $67,200