Cherry Florals is a florist that caters for weddings. The company's specialty is bouquets for brides and bridesmaids. Total sales for the month are budgeted at 2,000 bouquets, at a price of $45/bouquet. Variable selling expenses include commissions (1% of sales price) and delivery costs ($10/bouquet). Fixed selling expenses included insurance ($1,000), office equipment depreciation ($2,500), shop assistants' salaries ($20,000), and rent on the shop space ($5,000). Cherry Florals pays all costs as they are incurred.
What is the amount of cash budgeted for Selling and Administrative expenses for the month?

Question

Cherry Florals is a florist that caters for weddings. The company's specialty is bouquets for brides and bridesmaids. Total sales for the month are budgeted at 2,000 bouquets, at a price of $45/bouquet. Variable selling expenses include commissions (1% of sales price) and delivery costs ($10/bouquet). Fixed selling expenses included insurance ($1,000), office equipment depreciation ($2,500), shop assistants' salaries ($20,000), and rent on the shop space ($5,000). Cherry Florals pays all costs as they are incurred. 
What is the amount of cash budgeted for Selling and Administrative expenses for the month?

Quizplus · Accepted Answer

The Answer of Cherry Florals is a florist that caters for weddings. The company's specialty is bouquets for brides and bridesmaids. Total sales for the month are budgeted at 2,000 bouquets, at a price of $45/bouquet. Variable selling expenses include commissions (1% of sales price) and delivery costs ($10/bouquet). Fixed selling expenses included insurance ($1,000), office equipment depreciation ($2,500), shop assistants' salaries ($20,000), and rent on the shop space ($5,000). Cherry Florals pays all costs as they are incurred. 
What is the amount of cash budgeted for Selling and Administrative expenses for the month?

Cherry Florals Is a Florist That Caters for Weddings