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In an effort to control selling expenses, the Sell Big Corporation wants to develop a cost-volume formula for its selling expenses. An investigation of individual expense items shows
Sales commissions
Fixed
-------
Variable
30% of sales
Advertising
$50,000
Travel and entertainment
30,000
5% of sales
Sales staff salaries
12,000
Depreciation, rent, and insurance -sales office
5,000
Determine the cost-volume formula in the form of y' = a + bx.
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