QUESTION 2

Mike Company has provided the following data 10 MARKS

	This Year	Last Year
Units Sold	400,000	350,000
Sales Revenue	$1,300,000	$1,050,000
Less: Cost of Goods Sold	910,000	735,000
Gross Margin	390,000	315,000
Less: Operating Expenses	272,000	260,000
Operating Income	$118,000	$55,000

What is the best estimate of the company's variable operating expense per unit? 5 Marks

What is the best estimate of the company's total fixed operating expense per year? 5 Marks