Reference no: EM131217219
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?
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