Porter Corporation makes and sells a single product called a Yute. The company is in the process of preparing its Selling and Administrative Expense Budget for the last quarter of the year. The following budget data are available: All of these expenses (except depreciation) are paid in cash in the month they are incurred.
If the total budgeted selling and administrative expense for October is $518,520, then how many Yutes does the company plan to sell in October?

Question

Porter Corporation makes and sells a single product called a Yute. The company is in the process of preparing its Selling and Administrative Expense Budget for the last quarter of the year. The following budget data are available:  All of these expenses (except depreciation) are paid in cash in the month they are incurred.
If the total budgeted selling and administrative expense for October is $518,520, then how many Yutes does the company plan to sell in October?

Quizplus · Accepted Answer

11eacbfc_c602_f12b_8ffe_7987797527ef_TB7552_00 Total selling and administrative expenses = Fixed selling and administrative expenses + (Variable selling and administrative expenses per unit × Units sold)
$518,520 = $237,000 + ($20.70 per unit × Units sold)
$20.70 per unit × Units sold = $518,520 − $237,000
$20.70 per unit × Units sold = $281,520
Units sold = $281,520 ÷ $20.70 per unit = 13,600 units

Porter Corporation Makes and Sells a Single Product Called a Yute