老师，请教下

问题如下：

French notes that for the year just ended (2014), Archway’s cost of goods sold was 30% of sales. To forecast Archway’s income statement for 2015, French assumes that all companies in the industry will experience an inflation rate of 8% on the cost of goods sold. Exhibit 4 shows French’s forecasts relating to Archway’s price and volume changes.

Based on Exhibit 4, Archway’s forecasted gross profit margin for 2015 is closest to:

选项：

A.

62.7%.

B.

67.0%.

C.

69.1%.

解释：

The calculation of Archway’s gross profit margin for 2015, which reflects the industry-wide 8% inflation on cost of goods sold (COGS), is calculated as follows:

Revenue growth = (1 + Price increase for revenue) × (1 + Volume growth) – 1

Revenue growth = (1.05) × (0.97) – 1 = 1.85%

COGS increase = (1 + Price increase for COGS) × (1 + Volume growth) – 1

COGS increase = (1.08) × (0.97) – 1 = 4.76%

Forecasted revenue = Base revenue × Revenue growth increase

Forecasted revenue = 100 × 1.0185 = 101.85

Forecasted COGS = Base COGS × COGS increase

Forecasted COGS = 30 × 1.0476 = 31.43

Forecasted gross profit = Forecasted revenue – Forecasted COGS

Forecasted gross profit = 101.85 – 31.43 = 70.42

Forecasted gross profit margin = Forecasted gross profit/Forecasted revenue

Forecasted gross profit margin = 70.42/101.85 = 69.14%