For February, sales revenue is $250,000; sales commissions are 6% of sales; the sales manager's salary is $50,000; advertising expenses are $15,000; shipping expenses total 1% of sales; and miscellaneous selling expenses are $1,000 plus 1/2 of 1% of sales. Total selling expenses for the month of February are:
A) $65,000.
B) $69,750.
C) $82,250.
D) $84,750.

Question

Quizplus · Accepted Answer

Sales commissions = 6% x $250,000 = $15,000
Shipping expenses = 1% x $250,000 = $2,500
Miscellaneous selling expenses = $1,000 + (0.5% x $250,000) = $2,250
Total selling expenses = $15,000 + $50,000 + $15,000 + $2,500 + $2,250 = $84,750.

For February, Sales Revenue Is $250,000; Sales Commissions Are 6