The Virginia Company, a merchandising firm, operated 4 sales offices last year at a total cost of
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Question:
The Virginia Company, a merchandising firm, operated 4 sales offices last year at a total cost of $560,000, of which $76,000 was fixed cost. Virginia has determined that total costs are significantly influenced by the number of sales offices operated. Last year's costs and the number of sales offices can be used as the basis for predicting annual costs.
What would be the budgeted cost for the coming year if Virginia operated 7 sales offices? (adapted to CPA)
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