Pallen Company estimated sales of 11,000 units at $40 each, unit cost of goods sold of $22, marketing expense of $65,000 and a 1

Question

4 years ago

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Pallen Company estimated sales of 11,000 units at $40 each, unit cost of goods sold of $22, marketing expense of $65,000 and a 1

0% commission on each unit sold. Administrative expense is budgeted at $50,000. What is total selling expense?A. $44,000
B. $84,000
C. $65,000
D. $109,000

Business

1 answer:

kirza4 [7] · Answer 1 · 2021-11-18T23:45:58+03:00

Answer:

D. $109,000

Explanation:

The total selling expense which is an element of the income statement is the sum of the marketing expense and the sales commission.

The sales commission as given is a percentage of the number of units sold.

Total selling expense

= $65,000 + (10% * $40 * 11,000)

= $65,000 + $44,000

= $109,000