Dunweiler Inc.,is developing a pro forma income statement for the coming year.The chief financial officer estimates that sales will be $150,000,000.If selling,general,and administrative expenses (SGA)are historically 18% of sales,what are the expected SGA expenses (in dollars)?
A)$18,000,000
B)$27,000,000
C)$30,000,000
D)$41,000,000

Question

Quizplus · Accepted Answer

To calculate the expected SGA expenses, multiply the total sales by the percentage of sales that SGA expenses represent: $150,000,000 * 18% = $27,000,000.