Question

For April, sales revenue is $700,000; sales commissions are 5% of sales; the sales manager's salary is $98,000; advertising expenses are $90,000; shipping expenses total 2% of sales; and miscellaneous selling expenses are $2,100 plus 1/2 of 1% of sales. Total selling expenses for the month of April are:_______. a) $159,100 b) $186,000 c) $182,100 d) $242,600

Answer 1

Answer:

d) $242,600

Explanation:

Total selling expenses will be the aggregate of all costs associated with the selling activities.

In this case , the sales expenses will be

The sales commissions, 5 % of $700,000

   5/100 x $700,000    =$35,000

  The managers salary's   =$98,000  

   Advertising expense     =$90,000

Shipping expenses 2% of $700,00

 =2/100 x $700,000   =$14,000

Miscellaneous expenses

=2100 + (0.005x 700,000)   =$5,600

Total expenses= $35,000 + $98,000 +$90,000 + $14,000 + $5,6000

Total expenses = $242,600