A small craft store located in a kiosk expects to generate annual cash flows of $6,800 for the next three years. At the end of t
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Answer:
Cash Disbursement for selling and administrative expense = $42,370
Explanation:
Provided information,
Units to be sold in the month of March = 3,100 units
Variable selling and administrative cost per unit = $3.60
Fixed selling and administrative cost = $35,810
Depreciation included in fixed selling and administrative cost = $4,600
Cash fixed cost of selling and administrative cost = $35,810 - $4,600 = $31,210
Total cash cost of selling and administrative cost = Variable + Cash Fixed cost
Total variable cost = $3.60 3,100 units = $11,160
<u>Total cash disbursement = $11,160 + $31,210 = $42,370</u>
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