The Mercury Electric Company issued 2,000,000 shares of stock at $62.50 per share. These selling expenses are deducted: commissi
ons 4%, legal fees $2,255,500, advertising $450,000, printing costs $324,400, and accounting fees $386,000. Find the selling expense per share to the nearest cent.
Total expense= sum of all expenses incurred = commission+legal fees+advertising+printing cost+accounting fees
Total amount of shares sold=$ 2000000 x $62.5 =$ 125000000 commission= 4% of the total amount of shares sold = .04x12500000 =$ 5000000 total expenses= $5000000+$2255500+$450000+$324400+$386000 =$8415900 selling expense/share = $8415900/2000000 =$4.21/shareThe total expense per share is $4.21.
