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X-Tel budgets sales of $65,000 for April, $105,000 for May, and $70,000 for June. In addition, sales commissions are 10% of sales dollars and the
X-Tel budgets sales of $65,000 for April, $105,000 for May, and $70,000 for June. In addition, sales commissions are 10% of sales dollars and the company pays a sales manager a salary of $6,500 per month. Sales commissions and salaries are paid in the month incurred. Prepare a selling expense budget for April, May, and June. X-TEL Selling Expense Budget For April, May, and June April Budgeted sales Sales commiss MM Co, predicts sales of $45,000 for May, MM CO, pays a sales manager a monthly salary of $4,500 plus a commission of 6% of sales dollars. MM's production manager recently found a way to reduce the amount of packaging MM uses. As a result, MM's product will receive better placement on store shelves and thus May sales are predicted to increase by 8%. In addition, MM's shipping costs are predicted to decrease from 4% of sales to 3% of sales. Compute budgeted sales and budgeted selling expenses for May assuming MM switches to this more sustainable packaging, Budgeted sales Budgeted selling expenses
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