Answer:
The correct answer is A.
Explanation:
Giving the following information:
Sales (6,000nits*$1,000) $6,000,000
Cost of goods sold 870,000 (145 a unit)
Store manager's salary per year 192,000
Operating costs per year 305,000
Advertising and promotion per year 40,000
Commissions (4.1% of sales) 246,000
We will separate in variable and fixed costs:
Fixed costs:
Store manager's salary per year 192,000
Operating costs per year 305,000
Advertising and promotion per year 40,000
Variable costs:
COGS= 145*8,900= 1,290,500
Commission= 0.041*(8,900*1,000)= 364,900
Total costs= fixed costs + variable costs
Total costs= $2.192,400
