Stosur Courtside Caterers is a small company that has hired you to perform some management advisory services. The following information pertains to 20XX 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 (5% of sales) 67 500 What are the estimated total costs if Stosur expects to sell 6 500 units next year?

Select one:

A. $932 500

B. $1 114 750

C. $665 000

D. $1 017 500