Question

For February, sales revenue is $900,000; sales commissions are 5% of sales; the sales manager's salary is $96,000; advertising expenses are $80,000; 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 February are

Answer 1

Total selling expense 227,600

Step-by-step explanation:

sales commisions 900,000 x 5% = 45,000

sales manager salary 96,000

advertizing expenses 80,000

miscellaneous expense 6,600

Total selling expense 227,600

fixed miscellaneous selling expense 2,100

variable misc selling expense 0.5 of sales 4,500

total 6,600

freight-out --> are considered part of cost of goods sold their cost is included in the effort to prepare and sale the product