Reference no: EM132556837

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             $19,000

Bad debts - 2% of credit sales

(Average monthly credit sales $85,000 for the last half of the year)

All cash expenses are paid in the month for which they are incurred. Pay particular attention to non-cash fixed expenses.

Question a. 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?

Question b. If the company has budgeted to sell 20,000 units of Product SW in October, what will be the total budgeted variable selling and administrative expenses for October?

Question c. If the budgeted cash disbursements for selling and administrative expenses for November total $123,250, then how many units of Product SW does the company plan to sell in November (rounded to the nearest whole unit)?

Question d. If the company has budgeted to sell 25,000 units of Product SW in September, what will be the total budgeted fixed selling and administrative expenses for September?