International Imports is a merchandising firm.Last year they reported sales of $674,500 and cost of goods sold of $404,700.The company's total variable selling and administrative expense was $60,705,and fixed selling and administrative expense was $53,960.The total fixed costs for the firm are
A)$458,660.
B)$404,700.
C)$60,705.
D)$53,960.

Question

Quizplus · Accepted Answer

Fixed cost = total cost - (total variable cost + total cost of goods sold)
Fixed cost = 674,500 - (60,705+53,960+404,700)
Fixed cost = $154,135
Therefore, the total fixed costs for the firm are $53,960.

International Imports Is a Merchandising Firm