Answer:
Total cost= $392,500
Explanation:
Giving the following information:
1st Quarter= 24,000 units
2nd Quarter= 25,000
3rd Quarter= 21,000
4th Quarter= 22,000
The company's variable selling and administrative expense per unit is $2.30.
Fixed selling and administrative expenses include advertising expenses of $9,000 per quarter, executive salaries of $44,000 per quarter. Also, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finally, property taxes of $8,600 will be paid in the second quarter.
We will assume that insurance and taxes are for offices and properties of the selling and administrative department.
1st quarter:
Variable cost= 2.3*24,000= 55,200
Fixed expense= 9,000 + 44,000= 53,000
Insurance= 4,000
Total= $112,200
2nd quarter:
Variable cost= 2.3*25,000= 57,500
Fixed expense= 9,000 + 44,000= 53,000
Property taxes= 8,600
Total= $71,400
3rd quarter:
Variable cost= 2.3*21,000= 48,300
Fixed expense= 9,000 + 44,000= 53,000
Insurance= 4,000
Total= $105,300
4th quarter:
Variable cost= 2.3*22,000= 50,600
Fixed expense= 9,000 + 44,000= 53,000
Total= $103,600
Total cost= $392,500
