Calgary Doughnuts Had Sales of $300 Million in 2007

Multiple Choice

Calgary Doughnuts had sales of $300 million in 2007. Its cost of sales were $200 million. If sales are expected to grow at 15% in 2008, compute the forecasted costs using the percent of sales method.

A) $210 million
B) $215 million
C) $225 million
D) $230 million