Question

For February, sales revenue is $250,000; sales commissions are 6% of sales; the sales manager's salary is $50,000; advertising expenses are $15,000; shipping expenses total 1% of sales; and miscellaneous selling expenses are $1,000 plus 1/2 of 1% of sales. Total selling expenses for the month of February are:_______.

a. $65,000.
b. $69,750.
c. $82,250.
d. $84,750.

Answer 1

d. $84,750.

Step-by-step explanation:

Calculation to determine what Total selling expenses for the month of February are:

Sales commissions $15,000

($250,000 ×6%)

Sales manager's salary $50,000

Advertising expenses $15,000

Shipping expenses $2,500

($250,000 × 1%)

Miscellaneous selling expense $2,250

[$1,000 + ($250,000 × 0.5%)]

Total selling expenses $84,750

Therefore Total selling expenses for the month of February are:$84,750