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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 3,000 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 | 3,000 |
Sales revenue | $59,600 | $44,700 |
Cost of goods sold | 22,200 | 18,200 |
Gross margin | 37,400 | 26,500 |
General, selling and administrative expenses | 10,600 | 8,800 |
Net income | $26,800 | $17,700 |
Assuming that cost behavior did not change over the two year period, what is the company's annual fixed general, selling, and administrative cost? (Do not round intermediate calculations.)
$8,800
$10,600
$3,400
$2,900
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