Reference: 06-09
Prater Company Has Provided the Following Data -The Best Estimate of the Company's Total Fixed Operating Expense

Multiple Choice

Reference: 06-09
Prater Company has provided the following data: $$\begin{array} { | l | l | l | } \hline & \text { This Year } & \text { Last Year } \\\hline \text { Units sold } & 300,000 & 250,000 \\\hline \text { Sales revenue } & \$ 1,300,000 & \$ 1,050,000 \\\hline \text { Less cost of goods sold } & 910,000 & 735,000 \\\hline \text { Gross margin } & 390,000 & 315,000 \\\hline \text { Less operating expenses } & 272,000 & 260,000 \\\hline \text { Net income } & \$ 118,000 & \$ 55,000 \\\hline\end{array}$$
-The best estimate of the company's total fixed operating expense per year is

A) $188,000.
B) $72,000.
C) $200,000.
D) $212,000.