Question

A company budgets sales of $800,000 for June. The company pays a sales manager a monthly salary of $4,000 and a commission of 8% of that months sales. Total selling expenses for the month of June equal: Multiple Choice $68,000. $64,000. $76,000. $60,000. $44,000.

Answer 1

A company budgets sales of $800,000 for June, then the total selling expenses for the month of June equal 68,000.

What is selling expenses?

The costs of marketing, administering, and selling a commodity are known as selling expenses.

They are one of three types of operating expenses that a company incurs. Administration and general expenses are the other type of expenses.

Computation of Total Selling Expenses:

According to the given information,

Sales for June = $800,000

Commission on sales  = 8%

Salary payable to Sales manager = $4,000

Then the amount of commission on sales is:

$\text{Commission}= \text{Sales} \times \text{Commission Rate}\\\\\text{Commission}= 800,000 \times \dfrac{8}{100}\\\\\text{Commission}= \ 64,000$

Therefore, total selling expenses for the month of June are:

$\text{Total Selling Expenses} =\text{Commission + Salary Payable}\\\\\text{Total Selling Expenses}= \ 64,000+\ 4, 000\\\\\text{Total Selling Expenses}= \ 68,000$

Learn more about the selling expenses, refer to:

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