The Stacy Company makes and sells a single product: Product R.Budgeted sales for April are $300,000.Gross margin is budgeted at 30% of sales dollars.If the net income for April is budgeted at $40,000,what are the budgeted selling and administrative expenses?

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Quizplus · Accepted Answer

Gross margin is 30% of sales, so it's 0.30 * $300,000 = $90,000. To find the selling and administrative expenses, subtract the net income ($40,000) from the gross margin ($90,000). This gives $90,000 - $40,000 = $50,000.

The Stacy Company Makes and Sells a Single Product: Product