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Gratiano O. Corporation makes beautiful products. The firm's capacity is 1,000 units. The results for the first year of operations are based on 1,000 units

Gratiano O. Corporation makes beautiful products. The firm's capacity is 1,000 units. The results for the first year of operations are based on 1,000 units made and sold and can be found below:

Direct materials used, variable $4000

Administrative office salaries, fixed $10000

Factory supervision, fixed $4000

Sales commissions, variable ??

Depreciation, factory building, fixed $11000

Depreciation, administrative office equipment, fixed $500

Indirect materials, factory, variable $2000

Direct labor, variable $8000

Advertising, fixed ??

Insurance, factory, fixed $1880

Administrative office supplies (billing), variable $1000

Property taxes, factory, fixed $2000

Utilities, factory, fixed $3000

Sales $150000

Net Operating Income $89000

Contribution Margin $130000

1) What was the advertising cost for the Gratiano O. for the past year?

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