Miller's Good Value Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2019 operations.

Sales (5,000 microwave ovens)	$1,350,000
Cost of goods sold	540,000
Store manager's salary per year	75,000
Operating costs per year	225,000
Advertising and promotion per year	25,000
Commissions (4% of sales)	67,500

Required:

Determine the operating costs using the account analysis method if Miller's expects to sell 6,500 units next year.