Question

For February, sales revenue is $621,000; sales commissions are 5% of sales; the sales manager's salary is $80,800; advertising expenses are $82,000; shipping expenses total 4% of sales; and miscellaneous selling expenses are $2,700 plus 1/2 of 1% of sales. Total selling expenses for the month of February are a. $224,495 b. $196,550 c. $165,500 d. $221,390

Answer 1

To calculate the total selling expenses for February, we need to calculate sales commissions, shipping expenses, and miscellaneous selling expenses based on the given information.

Step-by-step explanation:

To find the total selling expenses for the month of February, we need to calculate the various expenses based on the given information.

Total sales commissions can be found by multiplying the sales revenue by 5%: $621,000 x 0.05 = $31,050.

Shipping expenses can be calculated by multiplying the sales revenue by 4%: $621,000 x 0.04 = $24,840.

Miscellaneous selling expenses can be calculated by adding $2,700 plus 0.5% of the sales revenue: $2,700 + ($621,000 x 0.005) = $2,700 + $3,105 = $5,805.

Total selling expenses are the sum of sales commissions, shipping expenses, and miscellaneous selling expenses:

Total selling expenses = $31,050 + $24,840 + $5,805 = $61,695.

Therefore, the correct answer is $61,695 (not one of the options listed).