Figure 9-11. Pallen Company estimated sales of 11,000 units at $40 each,unit cost of goods sold of $22,marketing expense of $65,000 and a 10% commission on each unit sold.Administrative expense is budgeted at $50,000.
Refer to Figure 9-11.What is total selling expense?

Question

Quizplus · Accepted Answer

Total selling expense includes the marketing expense of $65,000 and the 10% commission on each unit sold. The commission is 10% of $40, which is $4 per unit. For 11,000 units, the commission totals $44,000. Therefore, total selling expense is $65,000 + $44,000 = $109,000.