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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 were total fixed costs for 2018?

A.

$678 000

B.

$227 000

C.

$242 000

D.

$436 000

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