Sales for Cute Camel are anticipated to rise from $20,000,000 in Year 1 to $25,000,000 in Year 2, or $20,000,000 x (1 + 0.25). The amount of operating expenses should rise together with the volume of goods and services produced and sold.
More about operating expenses:
An expense a business faces as a result of ongoing operations is referred to as an operating expense. Operating expenses, which are frequently referred to as OPEX, include rent, tools, inventory costs, marketing, payroll, insurance, step charges, and money set aside for R&D before sales.
The total of a company's running costs during a given time period, like a month or a year, is what is referred to as "operating expenses" on an income statement.
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