Albury Enterprises Reports Year-End Information from 2018 as Follows Albury Is Developing the 2019 Budget

Multiple Choice

Albury Enterprises reports year-end information from 2018 as follows:
$$\begin{array} { l r } \text { Sales ( } 80000 \text { units) } & \$ 640000 \\\text { Cost of goods sold } & \underline { 40000 } \\\\\text { Gross margin } & 160000 \\\text { Operating expenses }& \underline { 130000 } \\\\\text { Operating expenses } & \$ 30000\end{array}$$
Albury is developing the 2019 budget.In 2019 the company would like to increase selling prices by 8%,and as a result expects a decrease in sales volume of 10%.All other operating expenses are expected to remain constant.Assume that COGS is a variable cost and that operating expenses are a fixed cost.
-Should Albury increase the selling price in 2019?

A) Yes,because operating profit is increased for 2019.
B) No,because sales volume decreases for 2019.
C) Yes,because sales revenue is increased for 2019.
D) No,because gross margin decreases for 2019.