The following data have been provided by a retailer that sells a single product.
-What is the best estimate of the company's total fixed selling and administrative expense per year?
A)$0
B)$80,000
C)$44,000
D)174,000

Question

The following data have been provided by a retailer that sells a single product. 
-What is the best estimate of the company's total fixed selling and administrative expense per year?
A)$0 
B)$80,000 
C)$44,000 
D)174,000

Quizplus · Accepted Answer

Total fixed cost = Total cost - Variable cost element
= $222,000 - ($0.24 per unit sold F1F1F1S1F1F1F10 200,000 units sold)
= $222,000 - $48,000
= $174,000

The Following Data Have Been Provided by a Retailer That