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Genends Good Value Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2015

  1. Genends Good Value Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2015 operations.

Sales (6,000 microwave ovens)

$1,740,000

Cost of goods sold

960,000

Store managers salary per year

100,000

Operating costs per year

250,000

Advertising and promotion per year

30,000

Commissions (3% of sales)

52,200

What are the estimated total costs if Genends store expects to sell 8,000 next year?

  1. $1,952,200
  2. $380,450
  3. $812,117
  4. $1,729,600
  5. None of the above

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