Question

Webster Corporation's budgeted sales for February are $325,000. Webster pays sales representatives a commission of 6% of sales dollars. The company pays a sales manager a monthly salary of $4,400 and expects advertising expense of $2,000 per month. Compute the total budgeted selling expenses for February.

Answer 1

Answer:

Total budgeted selling expenses:                                                      $

Commission paid to sales representatives = 6% x $325,000     = 19,500

Sales manager salaries                                = $4,400 per month = 4,400

Advertising expenses                                  =  $2,000 per month = 2,000

Total budgeted selling expenses                                                      25,900

Explanation:

Selling expenses include commission, sales manager salary and advertising expenses. The aggregate of the three gives total budgeted selling expenses.