Use the following information to answer this question.
Callaham 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 $115.80 per unit.
Sales volume (units)
Cost of sales $338,000 $422,500
Selling and administrative costs $89,600 $106,000
The best estimate of the total monthly fixed cost is
I’d really like to know how to get the answer more than anything. I’m not really sure where to start on this, I saw where someone had added the cost of sales and selling & administrative costs together, but then that gives me 2 answers and I can only choose one. Please show me how to get this. Thanks in advance!