Explore BrainMass

Explore BrainMass

    Information required to forecast cost of goods sold

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Now you have made your best prediction of next year's sales you want to estimate next year's cost of goods sold. Pick two pieces of information you definitely want to obtain in order to help you with this task being sure to explain why they will be helpful.

    © BrainMass Inc. brainmass.com October 2, 2020, 1:50 am ad1c9bdddf

    Solution Preview

    First you would want to know what the gross margin (contribution margin) was at the end of last year. For example, if last year, sales were $100,000
    And gross margin was $40,000

    That would tell you that cost of goods sold were $60,000 or 60% of sales. With your new sales ...

    Solution Summary

    In 200 words, the solution carefully explains the information required to forecast cost of goods sold.