Question
The orr company sells only one product called a bobb, the company is in the process of preparing its selling and adminstrative expense budget for
The orr company sells only one product called a bobb, the company is in the process of preparing its selling and adminstrative expense budget for the last half of the year. the following budget data are available.
variable cost per Bobb | Monthly fixed cost | |
Sales commisioning | R 0,90 | -------- |
Shipping | R 1,40 | -------- |
Advertising | R 0,40 | R10 000 |
Executive salaries | --------- | R 40,000 |
Depreciation on office equipment other | -------- R0,45 | R15 000 R 25 000 |
All of these expenses (except depreciation ) are paid in cash in the month they are incurred.
1. If the company has budgeted to sell 30 000 Bobbs in august, then the total budgeted selling and adminstrative expenses per unit sold for august is how much?
2. If the company has budgeted to sell 26 000 Bobbs in November , then the total budgeted variable selling and adminstrative expenses in November will be how much?
3. If the company has budgeted to sell 28 00 Bobbs in september , then the total budgeted fixed selling and adminstartive expenses for september is how much?
4. if the budgeted cash disbursements for selling and adminstrative expenses for October total R 160 500, then how many bobbs does the company plan to sell in October?
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