Question
SHOW YOUR WORK 1. Penny's TV and Appliance Store is a small company that has the following information pertaining to current year operations. Sales (2,000
SHOW YOUR WORK
1.
Penny's TV and Appliance Store is a small company that has the following information pertaining to current year operations.
| Sales (2,000 televisions) | $900,000 |
| Cost of goods sold | 400,000 |
| Store manager's salary per year | 70,000 |
| Operating costs per year | 157,000 |
| Advertising and promotion per year | 15,000 |
| Commissions (4% of sales) | 36,000 |
What are the estimated total costs if Penny's expects to sell 3,000 units next year?
| a. | $1,259,000 |
| b. | $678,000 |
| c. | $542,000 |
| d. | $269,000 |
| e. | $896,000 |
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
