Question

For February, sales revenue is $900,000, sales commissions are 5% of sales, the sales manager's salary is $96,000, advertising expenses are $80,000, shipping expenses total 2% of sales, and miscellaneous selling expenses are $2,100 plus 1/2 of 1% of sales. Total selling expenses for the month of February are

Answer 1

$245,600

Explanation:

The computation of Total selling expenses is shown below:-

Particulars Calculation Amount

Sales Commissions ($900,000 × 5%) $45,000

Salary expenses $96,000

Advertising expenses $80,000

Shipping expenses ($900,000 × 2%) $18,000

Miscellaneous selling

expenses ($2,100 + 1 ÷ 2 × $6,600

($900,000 × 1%)

Total Sales expenses $245,600

We simply added all the items