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Callander Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The
Callander 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 $140.50 per unit.
Sales Volume (units) | 6,000 | 7,000 |
Cost of Sales | $497,400 | $580,300 |
Selling and Administrative Costs | $273,600 | $294,700 |
The best estimate of the total monthly fixed cost is:
$875,000 | ||
$147,000 | ||
$771,000 | ||
$823,000 |
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