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 $90,000; 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 select one:
a. $161,000

b. $237,500

c. $235,000

d. $241,000

Answer 1

Answer:

The correct option is "d. $241,000".

Explanation:

let's sum each selling expense:

Sales Commissions ($700,000 sales x 5%)  = $35,000

Sales Manager Salary = $96,000

Advertising expenses = $90,000

Shipping expenses = ($700,000 sales x 2%) = 14,000

Miscellaneous selling expenses = ($2,500 + $700,000 x 1% x 0.5) = $6,000

Total Selling Expenses = $241,000