Question
Penny's TV and Appliance Store is a small company that has the following information pertaining to current year operations. Sales (2,000 televisions) $900,000 Cost of
Penny's TV and Appliance Store is a small company that has the following information pertaining to current year operations.
| Sales (2,000 televisions) | $900,000 |
| Cost of goods sold | 400,000 |
| Store manager's salary per year | 70,000 |
| Operating costs per year | 157,000 |
| Advertising and promotion per year | 15,000 |
| Commissions (4% of sales) | 36,000 |
What are the estimated total costs if Penny's expects to sell 3,000 units next year?
Select one:
A. $1,259,000
B. $678,000
C. $896,000
D. $542,000
E. $269,000
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Principles Of Cost Accounting
Authors: Edward J. Vanderbeck
15th Edition
978-0840037039, 0840037031
