1. The following data relate to the overhead expenditure of contract cleaners (for industrial cleaning) at two activity levels.

Square metres cleaned 12,750 15,100

Overheads $73,950 $83,585

When more than 20,000 square metres are industrially cleaned, it is necessary to have another supervisor and so the fixed costs rise to $43,350.

Calculate the estimated overhead expenditure if 32,000 square metres are to be industrially cleaned.