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McKinnon Inc. reports in its 2013 annual report, sales of $2,045 million and cost of goods sold of $818 million. For next year, you project that sales will grow by 5% and that cost of goods sold percentage will be 2 percentage points higher.
Projected cost of goods sold for 2014 will be:
Select one:
A. $834 million
B. $902 million
C. $859 million
D. $861 million
E. There is not enough information to determine the amount.
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