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help asap Pearl, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $50,000 in January, $60,000
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Pearl, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $50,000 in January, $60,000 in February, and $70,000 in March. Variable and fixed selling and administrative expenses are as follows: Variable Expenses: Power cost ( 40% of sales) Miscellaneous expenses: (10\% of sales) Fixed Expenses: Salaries expense: $6,000 per month Rent expense; $5,000 per month Fixed Expenses: Salaries expense: $6,000 per month Rent expense: $5,000 per month Depreciation expense: $1,000 per month Power cost/fixed portion: $800 per month Miscellaneous expenses/fixed portion: $1,000 per month Calculate total budgeted selling and administrative expenses for the month of January. A. $48,800 B. $25,000 C. $43,800 D. $38,800 Step by Step Solution
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