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Define estimate of company variable operating expense

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Question: Prater Company has provided the following data

                         This Year        Last Year

Units Sold           300,000        250,000

Sales Revenue     $1,300,000    $1,050,000

Less: Cost of Goods Sold     910,000     735,000

Gross Margin      390,000     315,000

Less: Operating Expenses      272,000    260,000

Operating Income    $118,000     $55,000

What is the best estimate of the company's variable operating expense per unit?

What is the best estimate of the company's total fixed operating expense per year?

Reference no: EM132743870

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