Question
Company A is a manufacturer. For the upcoming quarter, the budgeted unit sales are 40,000. For the preparation of its selling, general, and administrative budget
Company A is a manufacturer. For the upcoming quarter, the budgeted unit sales are 40,000. For the preparation of its selling, general, and administrative budget for the upcoming quarter, the following monthly cost behavior formula has been created: monthly selling, general, and administrative expenses = $2.75per unit x number of units sold + $36,000. Depreciation expense of $1,000 is included in the budgeted fixed costs. Calculate the budgeted selling, general, and administrative cash outflows for the upcoming quarter assuming all budgeted cash expenses are paid for when incurred.
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