South Coast Appliance Store is a small company that has hired you to perform some...

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Accounting

South Coast Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2017 operations.

Sales (6,000 microwave ovens) P6,000,000

Cost of goods sold P870,000

Store manager's salary per year P192,000

Operating costs per year P305,000

Advertising and promotion per year P40,000

Commissions (4.1% of sales) P246,000

What are the estimated total costs if South Coast's store expects to sell 8,900 units next year?

A. P2,192,400

B. P901,900

C. P4,104,950

D. P3,567,950

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