What is the budgeted cost of goods sold given the following for next budget period (in $’000)? Sales 5,000; Fixed manufacturing costs 2,000; Variable manufacturing costs are 40% of sales revenue. Inventory levels are expected to remain constant.
Answer: $4,000,000
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5y ago#1The variable manufacturing costs are 40% x $5,000,000 = $2,000,000
The fixed manufacturing costs are $2,000,000
Therefore the total cost = 2,000,000 + 2,000,000 = $4,000,000
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