Question 1027494
i would say the sg&a costs would be equal to 11,500.


10,000 this year.


25% is fixed, so fixed = 2,500 and 7,500 is variable, meaning it is dependent on sales.


assuming the fixed costs didn't change, then:


fixed costs = 2,500.


variable costs = 7,500 * 60,000 / 50,000 = 9,000.


total sg&a cost becomes 2,500 + 9,000 = 11,500.


that's my take.