Question

mm company predicts sales of 50,000 for may ,the company manger salary 4,900 plus 6% sales dollars the production manager found a way to reduce the amount of packaging the company uses may sales are predicted to increase by 8% in addition the shipping costs decrease from 4% to 3%

Answer 1

1. $54,000

2. $9,760

Step-by-step explanation:

1) Computation of budgeted sales

Budgeted sales = $50,000 + ( $50,000 × 8%)

Budgeted sales = $50,000 + $4,000

Budgeted sales = $54,000

Therefore the Budgeted sales will be $54,000

2). Calculation for the budgeted selling expenses for May using this formula

Budget selling expense for May= Manager salary + ( Commission on budget sales) + (Shipping cost on budget sales)

Let plug in the formula

Budget selling expense for May= $4,900 + ($54,000 × 6%) + ( $54,000 × 3%)

Budget selling expense for May= $4,900 + $3,240 + $1,620

Budget selling expense for May=$9,760

Therefore the Budget selling expense for May will be $9,760