The International Company makes and sells only one product, Product SW. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available:
$\begin{array}{l}
\begin{array} { | l | r | r | }
\hline & \text { Variable cost per unit sold } & \text { Monthly fixed cost } \
\hline \text { Sales commissions } & \$ 0.70 & \
\hline \text { Shipping } & 1.10 & \
\hline \text { Advertising } & 0.20 & \$14,000 \
\hline \text { Executive salaries } & &34,000 \
\hline \begin{array} { l r }
\text { Depreciation on office } \
\text { equipment }
\end{array} & & 11,000 \
\hline \text { Other } & 0.25 & 19,000\
\hline
\end{array}\\\
\text { All expenses other than depreciation are paid in cash in the month they are incurred. }
\end{array}$

-If the company has budgeted to sell 24,000 units of Product SW in September,what would be the total budgeted fixed selling and administrative expenses for September?

Question

The International Company makes and sells only one product, Product SW. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available:
$\begin{array}{l}
\begin{array} { | l | r | r | } 
\hline & \text { Variable cost per unit sold } & \text { Monthly fixed cost } \
\hline \text { Sales commissions } & \$ 0.70 & \
\hline \text { Shipping } & 1.10 & \
\hline \text { Advertising } & 0.20 & \$14,000 \
\hline \text { Executive salaries } & &34,000 \
\hline \begin{array} { l r } 
\text { Depreciation on office } \
\text { equipment }
\end{array} & & 11,000 \
\hline \text { Other } & 0.25 &  19,000\ 
\hline
\end{array}\\\
\text { All expenses other than depreciation are paid in cash in the month they are incurred. }
\end{array}$

-If the company has budgeted to sell 24,000 units of Product SW in September,what would be the total budgeted fixed selling and administrative expenses for September?

Quizplus · Accepted Answer

To calculate the total budgeted fixed selling and administrative expenses for September, we need to know the fixed expenses per unit and multiply them by the budgeted number of units. If the question doesn't provide the fixed expenses per unit, we cannot calculate the answer. Therefore, we cannot assume any amount and the best answer is D, 'Insufficient information to answer the question'.

The International Company Makes and Sells Only One Product, Product