For February, sales revenue is $700,000; sales commissions are 5% of sales; the sales manager's salary is $96,000; advertising expenses are $80,000; shipping expenses total 2% of sales; and miscellaneous selling expenses are $2,500 plus 1/2 of 1% of sales. Total selling expenses for the month of February are:
A) $151,000
B) $227,500
C) $225,000
D) $231,000

Question

Quizplus · Accepted Answer

Total selling expenses = Sales commissions (5% of $700,000) + Sales manager's salary + Advertising expenses + Shipping expenses (2% of $700,000) + Miscellaneous selling expenses ($2,500 + 0.5% of $700,000). This totals to $231,000.

For February, Sales Revenue Is $700,000; Sales Commissions Are 5