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Caiman Distribution Partners is the Brazilian distribution company of a U.S. consumer products firm. Inflation in Brazil has made bidding and budgeting difficult for marketing managers trying to penetrate some of the country’s rural regions. The company expects to distribute 440,000 cases of products in Brazil next month. The controller has classified operating costs (excluding costs of the distributedproduct) as follows: Account Operating Cost Behavior Supplies $ 350,000 All variable Supervision 220,000 $ 150,000 Fixed Truck expense 1,130,000 $ 190,000 Fixed Building leases 865,000 $ 560,000 Fixed Utilities 210,000 $ 125,000 Fixed Warehouse labor 865,000 $ 135,000 Fixed Equipment leases 750,000 $ 590,000 Fixed Data processing equipment 990,000 All fixed Other 850,000 $ 410,000 Fixed Total $ 6,230,000