Question

For June, Gold Corp. estimated sales revenue at $400,000. It pays sales commissionsthat are 4% of sales. The sales manager's salary is $190,000, estimated shippingexpenses total 1% of sales, and miscellaneous selling expenses are $10,000. How muchare budgeted selling expenses for the month of July if sales are expected to be$360,000?

Answer 1

The budgeted selling expenses for the month of July is $220,000

Step-by-step explanation:

The computation of the budgeted selling expenses are shown below:

= Sales commission + sales manager's salary + shipping expenses + miscellaneous selling expenses

where,

Sales commission = Sales × commission percentage

= $400,000 × 4%

= $16,000

Shipping expenses = Sales × expenses percentage

= $400,000 × 1%

= $4,000

The other expenses amount would remain the same

Now put these values to the above formula

So, the value would equal to

= $16,000 + $190,000 + $4,000 + $10,000

= $220,000