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
<em>Total selling expense budget = Variable cost + Fixed cost</em>
<em>= $28,750 + $57,100 </em>
<em>= $85,850</em>
Commercial stock market international service
Answer:
Net Income 516,000
Explanation:
Net income = revenue - expenses
sales revenue 1,318,000
COGS (549,000) (A)
Operating expenses <u> (253,000) </u>
Net Income 516,000
(A)
<u>To calculate the COGS we will use the inventory identity</u>
50,000 + 554,000 = 55,000 + COGS
50,000 + 554,000 - 55,000 = COGS
COGS = 549,000