I am trying to figure out COGS (for 2007) as the units sold bumps up to 7,500 and the average prices decreases 10%.

I am not sure how to calculate, but please see attached table with given info.

I calculated sales at $10,482,750 for the 2007 year (taking into account the increased units sold as 7500 and a 10% reduction in average ticket sale for the 2006 year).

I have also calculated (all for 2006):

Total FC at 5,011

Fixed Cost per unit at .73

VC at 6,106

VC per unit at .89

Contibution Margin at .67

Contribution Margin Ratio at .43

I know the COGS formula is Beginning Inventory + Purchases During the Period - Ending Inventory; but I am not sure how to find it with all I have previously calculated and the included table with given info.

Thank you!

Exhibit 1 Hallstead Jewelers; Income Statements for Years Ended January 31 (thousands of dollars) 2003 2004 2006 Sales $8,583 $8,102 $10,711 Cost of goods sold 4,326 4,132 5,570 Gross margin $4,257 $3,970 $ 5,141 Expenses Selling expense Salaries 2,021 2,081 3,215 Commissions 429 405 536 Advertising 254 250 257 Administrative expenses 418 425 435 Rent 120 420 840 Depreciation 84 84 142 Miscellaneous expenses 53 93 122 Total expenses $3,679 $3,758 $ 5,547 Net income $ 578 $ 212 $ (406) Source: Casewriter Exhibit 2 Hallstead Jewelers Operating Statistics 2003 2004 2006 Sales space (square feet) 10,230 10,230 15,280 Sales per square foot $ 839 $ 792 $ 701 Sales tickets 5,341 5,316 6,897 Average sales ticket $ 1,607 $ 1,524 $ 1,553 Source: Casewriter