Quester Company expects to sell 50,000 units of its product in the coming year. Each unit sells

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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.


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Managerial Accounting

ISBN: 978-0618777181

8th Edition

Authors: Susan V. Crosson, Belverd E. Needles

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