Question

For February, sales revenue is $700,000; sales commissions are 5% of sales; the sales manager's salary is $96,000; advertising expenses are $80,000; shipping expenses total 2% of sales; and miscellaneous selling expenses are $2,500 plus 1/2 of 1% of sales. Total selling expenses for the month of February are:
a. $231,000
b. $225,000
c. $227,500
d. $151,000

Answer 1

Answer:

Correct answer is A.

$231,000

Explanation:

Particulars                              Calculations                           Costs($)

Sales Commissions              700,000 x 5%                           35,000

Salary expenses                                                                     96,000

Advertising expenses                                                             80,000

Shipping expenses               700,000 x 2%                           14,000

Miscellaneous selling expenses 2,500 + 1/2(700,000 x 1%)    6,000

Total Sales expenses for the month of February=                     231,000