Determine the total expected operating expenses

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Question - Comparative income statements for Boggs Sports Equipment Company for the last two months are presented below:

 

July

August

Sales in Units

11,000

10,000

Sales Revenue

$165,000

$150,000

Less Cost of Goods Sold

72,600

66,000

Gross Margin

92,400

84,000

Less Operating Expenses:

 

 

Rent

12,000

12,000

Sales Commissions

13,200

12,000

Maintenance Expenses

13,500

13,000

Clerical Expense

16,000

15,000

Total Operating Expenses

54,700

52,000

Net income

$37,700

$32,000

All of the company's costs are either fixed, variable, or a mixture of the two (i.e., mixed). The company is a merchandising company. Assume that the relevant range includes all of the activity levels mentioned in this problem.

Required - If sales are projected to be 8,000 units in September, determine the total expected operating expenses?

A) $49,300. B) $46,600. C) $41,600. D) $44,750.

Reference no: EM133088793

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