Hartford Company expects to sell 50,000 units of its product in the coming year. Each unit sells for $50. Sales brochures and supplies for the year are expected to cost $9,000. Two sales representatives cover the southeast region. Each representative’s base salary is $20,000, and each earns a sales commission of 5 percent of the selling price of the units he or she sells. The sales representatives supply their own transportation; they are reimbursed for travel at a rate of $0.60 per mile. The company estimates that the sales representatives will drive a total of 70,000 miles next year. Calculate Hartford’s budgeted selling expenses for the coming year.
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