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Question - Lunderville Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 5,600 units are planned to be sold in December. The variable selling and administrative expense is $3.50 per unit. The budgeted fixed selling and administrative expense is $87,200 per month, which includes depreciation of $8,160 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the December selling and administrative expense budget should be:
$79,040
$98,640
$106,800
$19,600
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