1. Callaham Corporation is a wholesaler that sells a single product

ECONOMICS

Multiple Choice

Use the following information to answer this question.

Callaham Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for
$115.80 per unit.

Sales volume (units)

4,000

5,000

Cost of sales

$338,000

$422,500

Selling and administrative costs

$89,600

$106,000

The best estimate of the total monthly fixed cost is
A. $24,000. B. $528,500. C. $427,600. D. $478,050.

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