Porl Corporation makes and sells a single product called a Yute. The company is in the process of preparing its Selling and Administrative Expense Budget for the last quarter of the year. The following budget data are available: All of these expenses (except depreciation) are paid in cash in the month they are incurred.
-If the total budgeted selling and administrative expense for October is $409,000,then how many Yutes does the company plan to sell in October?

Question

Quizplus · Accepted Answer

Total selling and administrative expenses = Fixed selling and administrative expenses + (Variable selling and administrative expenses per unit F1F1F1S1F1F1F10 Units sold)
$409,000 = $231,000 + ($8.90 per unit F1F1F1S1F1F1F10 Units sold)
$8.90 per unit F1F1F1S1F1F1F10 Units sold = $409,000 - $231,000
$8.90 per unit F1F1F1S1F1F1F10 Units sold = $178,000
Units sold = $178,000 F1F1F1S1F1F1F10 $8.90 per unit = 20,000 units

Porl Corporation Makes and Sells a Single Product Called a Yute