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Can you explain this questions? Neufeld Company makes and sells widgets. The company is in the process of preparing its Selling and Administrative Expense Budget

Can you explain this questions?

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Neufeld Company makes and sells widgets. The company is in the process of preparing its Selling and Administrative Expense Budget for the month. The following budget data are available: Sales commissions: Variable Cost Per Unit - $1, Monthly Fixed Cost - $7.500 Shipping: Variable Cost Per Unit - $3. Monthly Fixed Cost - $0 Advertising: Variable Cost Per Unit - $4. Monthly Fixed Cost - $0 Executive salaries: Variable Cost Per Unit - $0. Monthly Fixed Cost - $90.000 Depreciation on office equipment: Variable Cost Per Unit - $0. Monthly Fixed Cost -$3,000 Other: Variable Cost Per Unit - $2. Monthly Fixed Cost - $4,500 Expenses are paid in the month incurred. If the company has budgeted to sell 60,000 widgets in October, how much is the total budgeted selling and administrative expenses for October? Correct Answer $705,000 $105,000 Your Answers $600,000 $697,500

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