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Answer the Following Questions Using the Information Below:
Genend's Good

Question 41

Multiple Choice

Answer the following questions using the information below:
Genend's Good Value Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2015 operations.
 Sales ( 6,000 microwave ovens)  $1,740,000 Cost of goods sold 960,000 Store manager’s salary per year 100,000 Operating costs per year 250,000 Advertising and promotion per year 30,000 Commissions (3% of sales)  52,200\begin{array}{lr}\text { Sales ( } 6,000 \text { microwave ovens) } & \$ 1,740,000 \\\text { Cost of goods sold } & 960,000 \\\text { Store manager's salary per year } & 100,000 \\\text { Operating costs per year } & 250,000 \\\text { Advertising and promotion per year } & 30,000 \\\text { Commissions (3\% of sales) } & 52,200\end{array}
-What were the total fixed costs for 2015?


A) $1,392,200
B) $380,000
C) $350,000
D) $1,012,200

Correct Answer:

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