Question

Webster Corporation's budgeted sales for February are $335,000. Webster pays sales representatives a commission of 7% of sales dollars. The company pays a sales manager a monthly salary of $5,400 and expects advertising expense of $3,000 per month. Compute the total budgeted selling expenses for February.

Answer 1

The correct answer is $31,850

Step-by-step explanation:

Webster pays sales representatives a commission of 7% of sales dollars

( sales for February are $335,000)

$335,000 x 7% = $23,450 Comision to sales representatives

Total budgeted selling expenses for February.

$23,450 (comision)

$5,400 (sales manager salary)

$3,000 (advertising expense)

$23,450 + $5,400 + $3,000 = $31,850 Total budgeted selling expenses for February.