Use the information below to answer questions 1-3. call 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 $140.50 per unit. sales volume ( 6,000 7,000 cost of $497,400 $580,300 selling, general, and administrative $273,600 $294,700 1. the best estimate of the total monthly fixed cost is:

Fixed Component of the selling, general adn adminsitrative cost  147,000

Explanation:

We calculate the fixed cost using the high low method.

We subtract high from low the difference is that 1,000 units generates 21,100 dollars of cost

variable cost per unit then will be:

21,100 / 1,000 = 21.1

we now calculate fixed cost:

Total cost = variable x Q + fixed cost

When Q = 6,000 total cost: 294700

294,700 = 21.1 (6,000) + Fixed Cost

Fixed Cost =  147,000