Quester Company expects to sell 50,000 units of its product in the coming year. Each unit sells
Question:
Quester Company expects to sell 50,000 units of its product in the coming year. Each unit sells for $45. Sales brochures and supplies for the year are expected to cost $7,000. Three 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 $.40 per mile. The company estimates that the sales representatives will drive a total of 75,000 miles next year. From the information provided, calculate Quester Company’s budgeted selling expenses for the coming year.
Step by Step Answer:
Managerial Accounting
ISBN: 978-0618777181
8th Edition
Authors: Susan V. Crosson, Belverd E. Needles