Garcia Production, Inc. has the following information from the most recent fiscal year. Costs based on a percent of sales are variable costs and all other costs are fixed costs. Sales (4,000 units) $4,000,000 Cost of goods sold (24% of sales) 960,000 Store supervisor's annual salary 260,000 Annual general and administrative costs 280,000 Annual selling costs 40,000 Sales commissions (5% of sales) 200,000

What type of cost estimation method is being used by the company?