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3 years ago

Windathon, Inc. expects sales volume totaling $500,000 for June. Data for the month follows:

Business

1 answer:

ivann1987 [24]3 years ago

8 0

Answer:

Here the variable cost can be computed using the following formula:

Variable cost = (Sales commissions + Shipping expense + Miscellaneous selling expenses) ×Sales

Variable cost = (4% + 1% + 3/4%) x $500,000 = $28,750

Fixed cost = Sales manager's salary + Advertising expense + Miscellaneous selling expenses

= $30,000 + $25,000 + $2,100

= $57,100

Total selling expense budget = Variable cost + Fixed cost

= $28,750 + $57,100

= $85,850

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Answer:

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5. Ask/Action: Please send any changes to the agenda to me by 3:00 p.m., November 3.

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