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South Coast Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2017 operations.
South Coast Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2017 operations.
Sales (6,000 microwave ovens) P6,000,000
Cost of goods sold P870,000
Store manager's salary per year P192,000
Operating costs per year P305,000
Advertising and promotion per year P40,000
Commissions (4.1% of sales) P246,000
What are the estimated total costs if South Coast's store expects to sell 8,900 units next year?
A. P2,192,400
B. P901,900
C. P4,104,950
D. P3,567,950
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