Question

Webster Corporation's budgeted sales for February are $325,000. Webster pays sales representatives a commission of 6% of sales dollars. The company pays a sales manager a monthly salary of $4,400 and expects advertising expense of $2,000 per month. Compute the total selling expenses to be reported on the selling expense budget for the month of February. Select one: a. $19,500. b. $6,400. c. $23,900. d. $25,900. e. $21,500.

Answer 1

Answer:

d. $25,900

Explanation:

The computation of the total selling expenses are shown below:

Sales representative commission $19,500

Monthly salary of sales manager  $4,400

Advertising expense per month   $2,000

Total selling expenses                   $25,900

The commission is computed below:

= Budgeted sales × commission percentage

= $325,000 × 6%

= $19,500