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Monthly operating expenses tor the company are given below: variable expenses: Sales commissions 4% of sales Fixed expenses: Advertising $200,000 Rent $18,000 Salaries $100,000 Utilities
Monthly operating expenses tor the company are given below: variable expenses: Sales commissions 4% of sales Fixed expenses: Advertising $200,000 Rent $18,000 Salaries $100,000 Utilities $ ?,000 Insurance $3.000 Depreciation $14,000 Insurance is paid on an annual basis, in November of each year. The company plans to purchase $10,000 in new equipment during May and $40,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $15,000 each quarter, payable in the rst month of the following quarter. Other relevant data is given below: Cash balance as of September 30 $?4,000 Inventory balance as ot September 30 $112,000 Merchandise purchases for September $200,000
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