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
A)$159,100
B)$242,600
C)$186,000
D)$182,100

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
A)$159,100 
B)$242,600 
C)$186,000 
D)$182,100

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