Question
Company A is a manufacturer. For the upcoming quarter the budgeted sales revenue is $720,000. The sales price is expected to be $20 per unit.
Company A is a manufacturer. For the upcoming quarter the budgeted sales revenue is $720,000. The sales price is expected to be $20 per unit. For the preparation of its Selling, General and Administrative Budget for the upcoming quarter, the following additional information was compiled:
Sales commissions $2.50 per unit
Sales and office salaries $40,000 per month
Office rent $2,000 per month
Office related depreciation $800 per month
Office utilities $500 per month plus $.50 for each unit sold
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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