Question

Zilly Co. predicts sales of $176,000 for June. Zilly pays a sales manager a monthly salary of $6,900 and a commission of 7% of that month’s sales dollars. Prepare a selling expense budget for the month of June.

Answer 1

Preparation of selling expenses is below

Step-by-step explanation:

The preparation of selling expense budget for the month of June is shown below:-

Zilly Co.

June

Sales budgeted $176,000

Commission of sales in percentage 7%

Sales Commission $12,320

Add: Monthly salary of sales manager $6,900

June Selling expenses $19,220

Note :- For computing the Monthly salary of sales manager we multiply Sales budgeted with commission of sales in percentage.