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
Which cost estimation method is being used by Penny’s TV and Appliance Store?
a. The industrial engineering method
b. The conference method
c. The account analysis method
d. The quantitative analysis method
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