Compute the total budgeted fixed selling expenses

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Reference no: EM132745493

Problem - The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available:

 

Monthly Fixed Cost

Variable Cost Per Deb Sold

Sales commissions

 

$1.10

Shipping

 

$1.60

Advertising

$52,000

$0.40

Executive salaries

$62,000

 

Depreciation on office equipment

$22,000

 

Other

$42,000

 

All of these expenses (except depreciation) are paid in cash in the month they are incurred.

If the company has budgeted to sell 17,000 Debs in February, then compute the total budgeted fixed selling and administrative expenses for February?

a. $156,000

b. $126,000

c. $178,000

d. $136,000

Reference no: EM132745493

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