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Namaste, Inc. is a manufacturer of self improvement products. For the upcoming quarter the budgeted sales revenue is $700,000. The sales price is expected to
Namaste, Inc. is a manufacturer of self improvement products. For the upcoming quarter the budgeted sales revenue is $700,000. 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 sold |
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 $0.50 for each unit sold |
Assume all cash expenses are paid when incurred.
1) What are the budgeted Selling, General, and Administrative cash outflows for the upcoming quarter?
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