South Georgia Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2021 operations. Sales (6,000 microwave ovens) $6,000,000 Cost of goods sold 870,000 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 What are the estimated total costs if South Coast's store expects to sell 8,900 units next year? a) $901,900.5 b) $2,073,500 c) $3,567,950 d) $2,192,400
South Georgia Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2021 operations. Sales (6,000 microwave ovens) $6,000,000 Cost of goods sold 870,000 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 What are the estimated total costs if South Coast's store expects to sell 8,900 units next year? a) $901,900.5 b) $2,073,500 c) $3,567,950 d) $2,192,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- South Georgia Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2021 operations.
Sales (6,000 microwave ovens) $6,000,000
Cost of goods sold 870,000
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
What are the estimated total costs if South Coast's store expects to sell 8,900 units next year?
- a) $901,900.5
b) $2,073,500
c) $3,567,950
d) $2,192,400
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