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

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