Solaris Inc. collected the following annual information on total net sales and total operating costs: Year Total Net Sales Total Operating Costs 2021 $7,200,000 2022 $7,800,000 $3,840,000 $4,020,000 In 2023, total net sales are budgeted to be $8,300,000. Using the high-low method, prepare an estimate of total operating costs for 2023, assuming total fixed costs and variable costs as a percentage of total net sales are expected to be the same in 2023 as in 2021 and 2022.
Solaris Inc. collected the following annual information on total net sales and total operating costs: Year Total Net Sales Total Operating Costs 2021 $7,200,000 2022 $7,800,000 $3,840,000 $4,020,000 In 2023, total net sales are budgeted to be $8,300,000. Using the high-low method, prepare an estimate of total operating costs for 2023, assuming total fixed costs and variable costs as a percentage of total net sales are expected to be the same in 2023 as in 2021 and 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Total net sales 7800000 total operating costs 4020000
Transcribed Image Text:Solaris Inc. collected the following annual information
on total net sales and total operating costs:
Year Total Net Sales Total Operating Costs
2021 $7,200,000
2022 $7,800,000
$3,840,000
$4,020,000
In 2023, total net sales are budgeted to be
$8,300,000. Using the high-low method, prepare an
estimate of total operating costs for 2023, assuming
total fixed costs and variable costs as a percentage of
total net sales are expected to be the same in 2023 as
in 2021 and 2022.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education