Soda Company collected the following annual information on total net sales and total operating costs:YearTotal Net SalesTotal Operating Costs2014$8,000,000$4,250,0002015$8,500,000$4,400,000In 2016, total net sales are budgeted to be $9,200,000. Using the high-low method, prepare an estimate of total operating costs for 2016, assuming total fixed costs and variable costs as a percentage of total net sales are expected to be the same in 2016 as in 2014 and 2015.
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