Question

Bux Corporation produces and sells one product. In November it expects to sell 10,600 units of this product. The company's variable selling and administrative expense are $3.70 per unit sold and its fixed selling and administrative expense is $50,000 per month. The estimated selling and administrative expense for November are closest to:___________.A) $50,000B) $89,220C) $59,480D) $39,220

Answer 1

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Sales= 10,600 units of this product.

The company's variable selling and administrative expenses are $3.70 per unit sold and its fixed selling and administrative expense is $50,000 per month

To calculate the total cost for administrative expenses, we need to use the following formula:

Total cost= total variable cost + total fixed costs

Total cost= 10,600*3.7 + 50,000

Total cost= $89,220