Answer:
Selling and administrative expense = $242000
so correct option is c. $242,000
Explanation:
given data
variable selling and administrative expense = $4 per unit
fixed selling and administrative expense = $50,000 per month
depreciation = $12,000
Cooke produced = 50,000 units
sold = 48,000 units
to find out
What amount would Cooke include for selling and administrative expense
solution
we get here variable selling and administrative expense will be here as
Variable selling and administrative expense = variable selling and administrative expense × sold ...................1
put here value we get
Variable selling and administrative expense = $48000 × $4
Variable selling and administrative expense = $192000
and Fixed selling and administrative expense is = 50000
Selling and administrative expense income statement is
Selling and administrative expense = $192000 + $50000
Selling and administrative expense = $242000
so correct option is c. $242,000
