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 a.$245,600. b.$241,100. c.$243,500. d.$227,600.

Answer 1

Option A

Total selling expenses for the month of February=$245,600

Step-by-step explanation:

The selling expenses include all the expenditure incurred in respect of activities revolving around the marketing and distribution of goods to the final consumer.

These expenditures may be fixed or variable in nature

DATA

Sales revenue - $900,000;

Sales commission - 5%× 900,000 = 45000

Sales manager salaries - 96,000

Advertising expenses - 80,000

Shipping expenses - 2% × 900,000 = 18000

Miscellaneous selling expenses = 2100 + (1/2× 1%× 900,000) =6600

Total selling expenses for the month of February

= 45000 + 96,000 + 80,000+ 18000 + 6600 = $245,600

Total selling expenses for the month of February=$245,600