The XYZ Company collected the following annual information on total net sales and total operating costs:
|
Year
|
Total Net Sales
|
Total Operating Costs
|
|
2015
|
$ 21,000,000
|
$ 16,000,000
|
|
2016
|
$ 22,000,000
|
$ 16,400,000
|
IN 2017, total net sales are budgeted to be $ 24,000,000 . Using the high-low method, prepare an estimate of total operating costs for 2017, assuming total fixed costs as a percentage of total net sales are expected to be the same in 2017 as in 2015 and 2016.