Reference no: EM132500528
You, YU CPA student, was asked by a small company to perform some management advisory services.
The following information pertains to 2019 operations.
Sales (5,00 microwaves ovens) $1,350,000
Cost of goods sold $540,000
Store manager's salary per year $75,000
Operating cots per year $225,000
Advertising costs per year $25,000
Commission (4% of sales) $ 67,500
Required
Question 1: Determine the operating costs using the account analysis method if Miller's expects to sell 6,500 units next year.