Reference no: EM132607903

The International Company makes and sells only one product, Product SW. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available:

                                            Variable cost per unit sold              Monthly fixed cost

Sales commissions                                  $0.70

Shipping                                                1.10

Advertising                                           0.20             $14,000

Executive salaries                                   -                    34,000

Depreciation on office equipment                   -                  11,000

Other                                                 0.25                      19,000All expenses other than depreciation are paid in cash in the month they are incurred.

Problem 1: If the company has budgeted to sell 25,000 units of Product SW in July, what will be the total budgeted selling and administrative expenses for July?

A) $78,000.

B) $134,250.

C) $123,250.

D) $56,250.