Use the following information to answer the question:

-If selling expenses remain a constant percentage of sales, what is their forecast for next year?
A) $3,750
B) $4,950
C) $4,350
D) $3,150

Question

Use the following information to answer the question:
  
-If selling expenses remain a constant percentage of sales, what is their forecast for next year?
A) $3,750 
B) $4,950 
C) $4,350 
D) $3,150

Quizplus · Accepted Answer

Selling expenses are a constant percentage of sales, so they will increase in proportion to sales. Sales are expected to increase from $75,000 to $90,000, an increase of 20%. Therefore, selling expenses will also increase by 20%, from $3,150 to $3,750.

Use the Following Information to Answer the Question