ACCOUNTING-The Tiger Company collected the following annual information
Question # 00137790
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Updated on: 11/21/2015 07:08 PM Due on: 12/21/2015
Question #3
The Tiger Company collected the following annual information on total net sales and total operating costs:
Year | Total Net Sales | Total Operating Costs |
2014 | $8,200,000 | $4,250,000 |
2015 | $8,700,000 | $4,450,000 |
In 2016, total net sales are budgeted to be $9,400,000. Using the high-low method, prepare an estimate of total operating costs for 2016, assuming total fixed costs and variable costs as a percentage of total net sales are expected to be the same in 2016 as in 2014 and 2015.
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Rating:
/5
Solution: ACCOUNTING-The Tiger Company collected the following annual information