Exercise 07-1 Sustainability and selling expense budget LO P1

MM Co. predicts sales of $35,000 for May. MM Co. pays a sales manager a monthly salary of $3,700 plus a commission of 6% of sales dollars. MMs production manager recently found a way to reduce the amount of packaging MM uses. As a result, MMs product will receive better placement on store shelves and thus May sales are predicted to increase by 8%. In addition, MMs shipping costs are predicted to decrease from 4% of sales to 3% of sales. Compute (1) budgeted sales and (2) budgeted selling expenses for May assuming MM switches to this more sustainable packaging.