Question

Assume that the salespeople of Excellent Corp. are paid 3% of sales as commission. The level of sales is $290,000 for this month, and the only fixed selling costs are $20,000. Excellent's budgeted selling costs for this month are:_____.a. $11,300. b. $38,700. c. $20,000. d. $28,700.

Answer 1

d. $28,700.

Step-by-step explanation:

The computation of the budgeted selling cost for the given month is shown below:

= Fixed selling cost + variable selling cost

= $20,000 + $290,000 × 3%

= $20,000 $+ $8,700

= $28,700

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Hence, the correct option is d. $28,700