The Prattle Corporation makes and sells only one product called a Deb. The company is in the
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Question:
The Prattle Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available:
Monthly Fixed CostVariable Cost Per Deb SoldSales commissions$0.88Shipping$1.36Advertising$57,500$0.38Executive salaries$48,000Depreciation on office equipment$24,000Other$31,800
All of these expenses (except depreciation) are paid in cash in the month they are incurred.
If the company has budgeted to sell 23,000 Debs in January, then the total budgeted variable selling and administrative expenses for January will be:
$51,520
$60,260
$28,980
$40,020
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