Question

For February, sales revenue is $647,000, sales commissions are 7% of sales, the sales manager's salary is $81,100, advertising expenses are $87,600, shipping expenses total 2% of sale, and miscellaneous selling expenses are $3,000 plus 1/2 of 1% of sales. Total selling expenses for the month of February are: ________

Answer 1

Answer:

Total Selling Expenses for the month of February = $232,565

Explanation:

Selling Expenses for the month of February:

Sales Commission = $647,000 * 7/100

Sales Commission = $45,290

Sales Manager's Salary expenses = $81,100

Advertising Expenses = $87,600

Shipping expenses = [$647,000 * 2/100]

Shipping expenses = $12,340

Miscellaneous selling expenses = $3,000 + [($647,000 * 1%) / 2]

= [$3,000 + $3,235]

=$6,235

Total Selling Expenses = $45,290 + $81,100 + $87,600 +  $12,340 + $6,235

Total Selling Expenses = $232,565

Total Selling Expenses for the month of February = $232,565