Gambino Corporation Is a Wholesaler That Sells a Single Product

Multiple Choice

Gambino 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 $138.80 per unit. $$\begin{array} { | l | r | r | } \hline \text { Sales volume (units) } & 6,000 & 7,000 \\\hline \text { Cost of sales } & \$ 369,000 & \$ 430,500 \\\hline \text { Selling and administrative costs } & \$ 407,400 & \$ 418,600 \\\hline\end{array}$$ The best estimate of the total monthly fixed cost is:

A) $776,400
B) $340,200
C) $812,750
D) $849,100