Below is budgeted production and sales information for Flushing Company for the month of December. The unit selling price for product XXX is $5 and for product ZZZ is $15.
-For February, sales revenue is $700,000, sales commissions are 5% of sales, the sales manager's salary is $96,000, advertising expenses are $90,000, shipping expenses total 2% of sales, and miscellaneous selling expenses are $2,500 plus 1/2 of 1% of sales. Total selling expenses for the month of February are
A)$161,000
B)$237,500
C)$235,000
D)$241,000

Question

Below is budgeted production and sales information for Flushing Company for the month of December.  The unit selling price for product XXX is $5 and for product ZZZ is $15.​
-For February, sales revenue is $700,000, sales commissions are 5% of sales, the sales manager's salary is $96,000, advertising expenses are $90,000, shipping expenses total 2% of sales, and miscellaneous selling expenses are $2,500 plus 1/2 of 1% of sales. Total selling expenses for the month of February are
A)$161,000 
B)$237,500 
C)$235,000 
D)$241,000

Quizplus · Accepted Answer

Sales commissions: 5% of $700,000 = $35,000  Shipping expenses: 2% of $700,000 = $14,000  Miscellaneous expenses: $2,500 + (0.5% of $700,000) = $2,500 + $3,500 = $6,000  Total selling expenses = $35,000 + $96,000 + $90,000 + $14,000 + $6,000 = $241,000.

Below Is Budgeted Production and Sales Information for Flushing Company