Question
A company sells a single product and its sales staff earns a commission of $20 per unit. It costs $15 to ship each unit, and
A company sells a single product and its sales staff earns a commission of $20 per unit. It costs $15 to ship each unit, and a $5 promotional catalog is sent with each item. The cost of goods sold is budgeted at $30 per unit. The company's fixed manufacturing overhead is budgeted at $45,000 per month. The budget for executive salaries is $40,000 per month, and the base salaries for the sales staff is $22,000. Other monthly expenses include advertising of $15,000, office rent of $10,000, office equipment depreciation of $8,000, and $3,000 of other administrative expense. If the company budgets its November sales at 5,000 units, what would be the total sales and administrative expense budget? a. $298,000. b. $343,000. c. $448,000. d. $493,000.
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