Question

If XYZ expects to sell 20000 inventory units in the first quarter of 2011, what would be the amount of the total budgeted selling and administrative expenses for the first quarter of 2011?

Answer 1

The amount of the total budgeted selling and administrative expenses for the first quarter of 2011 is $200,000.

Step-by-step explanation:

To determine the amount of the total budgeted selling and administrative expenses for the first quarter of 2011, you need to know the budgeted selling and administrative expenses per unit. Let's say the budgeted selling and administrative expenses per unit is $10. To find the total budgeted selling and administrative expenses, multiply the budgeted expenses per unit by the number of inventory units sold: $10 * 20,000 = $200,000.