Gambarini Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $219.90 per unit. Sales volume (units) Cost of sales 4,700 6,410 $390,100 $532,030 Selling and administrative costs $617,000 $663,170 The best estimate of the total monthly fixed cost is: a. $1,195,200 b. $1,053,060 c. $490,100 d. $1,007,100

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...
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Gambarini Corporation is a wholesaler that sells a single product.
Management has provided the following cost data for two levels of
monthly sales volume. The company sells the product for $219.90 per
unit.
Sales volume (units)
Cost of sales
4,700 6,410
$390,100 $532,030
Selling and administrative costs $617,000 $663,170
The best estimate of the total monthly fixed cost is:
a. $1,195,200
b. $1,053,060
c. $490,100
d. $1,007,100
Transcribed Image Text:Gambarini Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $219.90 per unit. Sales volume (units) Cost of sales 4,700 6,410 $390,100 $532,030 Selling and administrative costs $617,000 $663,170 The best estimate of the total monthly fixed cost is: a. $1,195,200 b. $1,053,060 c. $490,100 d. $1,007,100
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