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he following budget information is available for the HD Sales Company for January: Sales $ 320,000 Freight out $ .25 per unit sold Depreciation on
he following budget information is available for the HD Sales Company for January:
Sales | $ | 320,000 | |
Freight out | $ | .25 | per unit sold |
Depreciation on Admin. Equipment | $ | 10,000 | |
Sales & Admin. Salaries | $ | 40,000 | +2% of sales |
Advertising | $ | 12,000 | |
Depreciation on Manuf. Equip. | $ | 15,000 | |
Lease on Sales Building | $ | 45,000 | |
Miscellaneous Selling Expenses | $ | 5,000 | |
Based on January sales of 20,000, the amount of HDC's expected cash outflow for selling and administrative expenses would be |
a. $123,400.
b. $131,250.
c. $113,400.
d. $128,400.
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