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Diamond Sports is a small company that purchases and sells cricket bats. The company has hired you to perform some management advisory services. The following
Diamond Sports is a small company that purchases and sells cricket bats. The company has hired you to perform some management advisory services. The following information pertains to 2018 operations.
Sales (2000 cricket bats) | $900 000 | |
Cost of goods sold | 400 000 | |
Store manager's salary per year | 70 000 | |
Operating costs per year | 157 000 | |
Advertising and promotion per year | 15 000 | |
Commissions (4% of sales) | 36 000 |
What are the estimated total costs if Hewitt expects to sell 3000 units next year?
A. | $799 000 | |
B. | $896 000 | |
C. | $678 000 | |
D. | $1 017 000 |
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