Exhibit 5-2 Manchester Company is a small company that has hired you to help them estimate costs. They present you with the following information from the companys most recent fiscal year.

Sales (2,000 units) $1,000,000 Cost of goods sold (24% of sales) 240,000 Store supervisor's annual salary 65,000 Annual operating costs 70,000 Annual advertising and promotion 10,000 Sales commissions (5% of sales) 50,000

Refer to Exhibit 5-2. What were the total fixed costs for the companys most recent fiscal year?

$145,000

$135,000

$70,000

$195,000

None of the answer choices is correct.