Question
Bee Company is a honey wholesaler An income statement and other data for the second quarter of the year are given Sales 960000 Cost of
Bee Company is a honey wholesaler An income statement and other data for the second quarter of the year are given
Sales 960000
Cost of goods sold 420000
Gross margin 54000
Selling and administrative expenses:
Selling 200000
Administrative 75000
Total Selling and administrative expenses 275000
Net operating income 265000
Other data
Average selling price $ 60 per unit
selling expenses... fixed selling expenses plus 8% of sales
Administrative expenses... fixed administrative expenses plus $2 per unit
1 - Bee company cost formula for total selling and administrative expenses with X equal to the number of units sold would be:
A Y=166200+6.80X
B Y=275000+4.80X
C Y=123200+4.80X
D Y=123200+6.80X
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