Determine the operating costs using the account analysis

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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.

Reference no: EM132500528

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