Question

fitchpo company reports in its 2019 10-k, sales of $565 million and cost of goods sold of $226 million. for next year, you project that sales will grow by 6% and that cost of goods sold percentage will be 1 percentage point higher. projected cost of goods sold for 2020 will be:

Answer 1

$246 million is the cost of goods sold for 2020

% COGS of sales FY2019=226/565=40%

FY2020 Sales=FY2019 Sales

1.06=5651.06=$598.9

So, FY2020 COGS=598.9*(40%+1%)=$245.55= $246

What is cost of goods sold?

The direct costs of producing the products that a business sells are referred to as its cost of goods sold (COGS). The cost of the labor and materials directly employed to make the good are also included in this sum. It doesn't include indirect expenditures like those associated with the sales staff and distribution.

What is the formula for cost of goods sold?

In order to compute cost of goods sold (COGS), one must first determine the value of inventory at the start of the study period, then add the cost of any new inventory acquired throughout the study period, and then deduct the value of inventory held at the end of the study period.

Learn more about Cost of goods sold here:
https://brainly.com/question/13499038
#SPJ4