Thursday, June 23, 2011

What were total fixed costs for 20x3?

ACCOUNTING

Multiple Choice

Penny’s TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 20x3 operations.


Sales (2,000 televisions) $ 900,000

Cost of goods sold 400,000

Store manager's salary per year 70,000

Operating costs per year 157,000

Advertising and promotion per year 15,000

Commissions (4% of sales) 36,000


What were total fixed costs for 20x3?

a. $678,000

b. $436,000

c. $242,000

d. $227,000

Click here for the SOLUTION

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