You, YU CPA student, was asked by a small company to perform some management advisory services.

The following information pertains to 2019 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 (4% of sales) 67,500

Required

a. Determine the total costs using the account analysis method if Miller's expects to sell 6,500

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