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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
