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The following income statements are provided for Li Company's last two years of operation: 2012 2013 Number of units produced and sold 4,000 3,500 Sales

The following income statements are provided for Li Company's last two years of operation: 2012 2013 Number of units produced and sold 4,000 3,500 Sales revenue $60,000 $52,500 Cost of goods sold 39,200 35,200 Gross margin 20,800 17,300 General, selling and administrative expenses 11,500 10,500 Net income $9,300 $6,800 Assuming that cost behavior did not change over the two year period, what is the company's annual fixed general, selling, and administrative cost?

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