Prepare amonthly flexible selling expense budget for Prater Company forsales vol
ID: 2433810 • Letter: P
Question
Prepare amonthly flexible selling expense budget for Prater Company forsales volumes of $250,000, $440,000, and $770,000, based on thefollowing data:
Sales commissions
5% of sales
Sales manager's salary
$100,000 per month
Advertising expense
$ 95,000 per month
Shipping expense
2% of sales
Miscellaneous selling expense
$2,100 per month plus 3/4% ofsales
Sales commissions
5% of sales
Sales manager's salary
$100,000 per month
Advertising expense
$ 95,000 per month
Shipping expense
2% of sales
Miscellaneous selling expense
$2,100 per month plus 3/4% ofsales
Explanation / Answer
$250,000
$440,000
$770,000
$12,500
$22,000
$38,500
Sales manager's salary
$10,000
$10,000
$10,000
Advertising expense
$95,000
$95,000
$95,000
Shipping expense 2% of Sales
$5,000
$8,800
$15,400
Miscellaneous selling expense($2,100 + 3/4% of Sales)
$3,975
$5,400
$7,875
$126,475
$141,200
$166,775
Sales$250,000
$440,000
$770,000
Sales Commission 5% of Sales$12,500
$22,000
$38,500
Sales manager's salary
$10,000
$10,000
$10,000
Advertising expense
$95,000
$95,000
$95,000
Shipping expense 2% of Sales
$5,000
$8,800
$15,400
Miscellaneous selling expense($2,100 + 3/4% of Sales)
$3,975
$5,400
$7,875
Total$126,475
$141,200
$166,775