Delivery and commission expenses

Assignment Help Financial Accounting
Reference no: EM13922076

The Year 1 selling expense budget for Karin Corporation is as follows:

Budgeted sales

$2,500,000

Selling costs:

 

 

 

Delivery expenses

$ 25,000

 

Commission expenses

75,000

 

Advertising expenses

20,000

 

Office expenses

12,000

 

Miscellaneous expenses

30,000

 

Total

$ 162,000


Delivery and commission expenses vary proportionally with budgeted sales in dollars. Advertising and office expenses are fixed. Miscellaneous expenses include $10,000 of fixed costs. The rest varies with budgeted sales in dollars. The Year 2 budgeted sales is $3,400,000.  

What will be the value for commission expenses in the Year 2 selling expense budget?

 

A.

$122,000

 

B.

$ 24,000

 

C.

$102,000

 

D.

$ 48,000

Reference no: EM13922076

Questions Cloud

Purvis and associates issued bonds with a face value : Write a brief memo explaining whether the effective interest rate method or the straight line method will produce the highest amount of interest expense recognized on the 2013 income statement.
The stock is classified as available : On February 15, Seacroft buys 7,700 shares of Kebo common at $28.60 per share plus a brokerage fee of $430. The stock is classified as available-for-sale securities. On March 15, Kebo declares a dividend of $1.22 per share payable to stockholders of ..
What are arithmetic-geometric average returns for stock : What are the arithmetic and geometric average returns for a stock with annual returns of 8 percent, 9 percent, –7 percent, and 16 percent? List the arithmetic answer first.
What do you think might be causing the given behavior : They are also uncooperative with one another. What do you think might be causing this behavior, and what might you do to improve the situation?
Delivery and commission expenses : Delivery and commission expenses vary proportionally with budgeted sales in dollars. Advertising and office expenses are fixed. Miscellaneous expenses include $10,000 of fixed costs. The rest varies with budgeted sales in dollars. The Year 2 budgeted..
What is the payback period for the project : Suppose Palmer Properties is considering investing $2.6 million today (i.e., C0 = -2,600,000) on a new project that is expected to last for 7 years. What is the payback period for the project? Show your work. What is the net present value of the proj..
Why then do people leave tips in restaurants : Why then do people leave tips in restaurants? If a study were to compare the size of tips earned by servers in restaurants on interstate highways with those in restaurants near residential neighborhoods, what would you expect to find? Why?
Hat are advantages of the alternative that you have selected : Analyze the alternatives presented and make a recommendation on purchasing the Jaguar. Be sure to provide support for your recommendation - why do you prefer the stated alternative? What are the advantages of the alternative that you have selected..
Provide a critical evaluation of the given statement : The CEO of the company was quoted as saying, "It just goes to show that money does not motivate people." Provide a critical evaluation of this statement.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Depreciable units depreciation per unit depreciation expens

A machine costing $212,800 with a four-year life and an estimated $16,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 492,000 units of product during its life. It actuall..

  Prepare schedule to show balance in investment account

On January 2, 201, Heinreich Co. paid $500,000 for 24% of the voting common stock of jones corp. At the time of investment, Jones had net assets with a book value of $1,800,000. Prepare a schedule to show the amount of goodwill from Heinrich's invest..

  Evaluate amortization for 2013

Evaluate amortization for 2013 and prepare the journal entry to record the revaluation of the patent and evaluate amortization for 2014

  Costello corporation manufactures a particular product the

costello corporation manufactures a particular product. the standard cost per unit of product is shown below.direct

  Compute a production schedule and a summary of cash payments

Compute a production schedule and a summary of cash payments for March, April, and May. Remember that production in any one month is equal to sales plus desired ending inventory minus beginning inventory.

  Determine the amount of revenue

Calculate operating income if sales volume increases by 20% and Determine the amount of revenue required for Edwards to break even

  Which are used in the assembly of one of its products

Green Company produces 1,000 parts per year, which are used in the assembly of one of its products. The annual impact on the company's net operating income as a result of buying the part from the outside supplier would be:

  Determine equivalent units in process for direct materials

Determine equivalent units in process for direct materials and conversion costs, assuming there was no beginning inventory. Show all of your work.

  What amount of the joint costs will be assigned to product

Product A can be sold for $100 per unit. Product B can be sold for $80 per unit. What amount of the joint costs will be assigned to Product A if joint costs are allocated on the basis of number of units produced?

  A job-order cost system is employed in those situations

A job-order cost system is employed in those situations where

  How to prepare a trial balance

Determine the October 31 balance for each of the accounts above, and prepare a trial balance at October 31,2010.

  Prepare a trial balance of stephanie stouse

Prepare a trial balance of Stephanie Stouse, Registerd Dietician at November 30, 2007

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd