Oceanside Company's expected sales for April are $27,600. Information about other budgeted expenses is presented below. $\begin{array} { l }
\text { Budgeted}& \text {Expensesper Month } \
\ \text {Wages }&\$2,000\
\text { Advertising}&1,680\
\text {Depreciation }&1,440\
\text {Rent }&2,560\
\text {Other }& \text { 5\% of sales} \
\end{array}$
is the expected total expenses for the month of April.

Question

Oceanside Company's expected sales for April are $27,600. Information about other budgeted expenses is presented below. $\begin{array} { l  }
 \text { Budgeted}& \text {Expensesper Month } \
\ \text {Wages }&\$2,000\
 \text { Advertising}&1,680\
 \text {Depreciation }&1,440\
 \text {Rent }&2,560\
 \text {Other }& \text { 5\% of sales} \
\end{array}$
 is the expected total expenses for the month of April.

Quizplus · Accepted Answer

The total expenses include fixed expenses (Wages, Advertising, Depreciation, Rent) and variable expenses (5% of sales). Fixed expenses total $7,680 ($2,000 + $1,680 + $1,440 + $2,560). Variable expenses are 5% of $27,600, which is $1,380. Total expenses are $7,680 + $1,380 = $9,060.

Oceanside Company's Expected Sales for April Are $27,600 Is the Expected Total Expenses for the Month of April