Rerun Manufacturing Company is in the process of preparing its 2016 budget and is anticipating...
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Rerun Manufacturing Company is in the process of preparing its 2016 budget and is anticipating 25% increase in the number of units sold. 15% increase in the direct material unit cost. 10% increase in the direct labor cost per unit. 8% increase in the manufacturing overhead cost per unit. 12% increase in the selling price. 5% increase in the administrative expenses. Rerun does not keep any units in inventory. The composition of the cost of finished products during 2015 for materials, direct labor, and facto $532.000 26,600 505,400 314,000 Sales (38,000 units) Less sales returns Net sales Cost of Goods Sold Gross Profit Selling Expenses Admin.Expenses Net Income $ 191,400 $ 68,000 38.000 106,000 $ 85.400 What are estimated net sales for 2016, assuming the sales return/gross sales relationship remains co O $707,560 O $551,000. O $709,740 O $628,425
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