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The Year 1 selling expense budget for Zap Corporation is as follows: Budgeted sales $550,000 Selling costs: Delivery expenses $ 5,500 Commission expenses 11,000 Advertising
The Year 1 selling expense budget for Zap Corporation is as follows:
Budgeted sales | $550,000 |
Selling costs: |
Delivery expenses | $ 5,500 | |
Commission expenses | 11,000 | |
Advertising expenses | 5,000 | |
Office expenses | 3,000 | |
Miscellaneous expenses | 6,950 |
Total | $ 31,450 |
Delivery and commission expenses vary proportionally with budgeted sales in dollars. Advertising and office expenses are fixed. Miscellaneous expenses include $2,000 of fixed costs. The rest varies with budgeted sales in dollars. The budgeted sales for Year 2 are $660,000. What will be the value of miscellaneous expenses in the Year 2 selling expense budget?
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