Question

g rporation's budgeted sales for February are $334,000. Webster pays sales representatives a commission of 6% of sales dollars. The company pays a sales manager a monthly salary of $5,300 and expects advertising expense of $2,900 per month. Compute the total selling expenses to be reported on the selling expense budget for the month of February.

Answer 1

Answer:

$28,240

Explanation:

Total sales = $334,000

Variable cost:

Sales commissions = $334,000 × 6%

                                = $20,040

Total fixed costs = Sales manager's salary + Advertising expenses

                            = $5,300 + $2,900

                            = $8,200

Total selling expenses = Total variable cost + Total fixed cost

                                      = $20,040 + $8,200

                                      = $28,240

Therefore, the total selling expenses to be reported on the selling expense budget for the month of February is $28,240.