Below is budgeted production and sales information for Flushing Company for the month of December. The unit selling price for product XXX is $5 and for product ZZZ is $15.
-For April, sales revenue is $700,000, sales commissions are 5% of sales, the sales manager's salary is $98,000, advertising expenses are $90,000, shipping expenses total 2% of sales, and miscellaneous selling expenses are $2,100 plus 1/2 of 1% of sales. Total selling expenses for the month of April are

Question

Below is budgeted production and sales information for Flushing Company for the month of December.  The unit selling price for product XXX is $5 and for product ZZZ is $15.​
-For April, sales revenue is $700,000, sales commissions are 5% of sales, the sales manager's salary is $98,000, advertising expenses are $90,000, shipping expenses total 2% of sales, and miscellaneous selling expenses are $2,100 plus 1/2 of 1% of sales. Total selling expenses for the month of April are

Quizplus · Accepted Answer

Sales commissions: 5% of $700,000 = $35,000.  Shipping expenses: 2% of $700,000 = $14,000.  Miscellaneous selling expenses: $2,100 + (0.5% of $700,000) = $2,100 + $3,500 = $5,600.  Total selling expenses = $35,000 (commissions) + $98,000 (manager's salary) + $90,000 (advertising) + $14,000 (shipping) + $5,600 (miscellaneous) = $242,600.

Below Is Budgeted Production and Sales Information for Flushing Company