Information is available for the hd sales company

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Reference no: EM13963399

He following budget information is available for the HD Sales Company for January:

 

 

 

 

  Sales

$

320,000

 

  Freight out

$

.25

per unit sold

  Depreciation on Admin. Equipment

$

10,000

 

  Sales & Admin. Salaries

$

40,000

+2% of sales

  Advertising

$

12,000

 

  Depreciation on Manuf. Equip.

$

15,000

 

  Lease on Sales Building

$

45,000

 

  Miscellaneous Selling Expenses

$

5,000

 

 

 

Based on January sales of 20,000, the amount of HDC's expected cash outflow for selling and administrative expenses would be.

a. $123,400.

b. $131,250.

c. $113,400.

 

d. $128,400.

Reference no: EM13963399

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