The International Company makes and sells only one product, Product SW. The company is in the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The International Company makes and sells only one product, Product SW. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available: Variable Cost Monthly Fixed Per Unit Sold s0.70 $1.10 Cost Sales commissions. Shipping.. Advertising. $0.20 S14,000 S34,000 S11,000 $19,000 Executive salaries. Depreciation on office equipment. Other. $0.25 All expenses other than depreciation (no payment for Depreciation) are paid in cash in the month they are incurred. a) If the company has budgeted to sell 25,000 units of Product SW in July, then the total budgeted selling and administrative expenses for July will be: Answer. $134,250 Hint: Calculate Variable cost per unit = Answer = $2.25 Fixed cost = $78,000 Total budgeted selling and administrative expenses = Variable cost + Fixed cost Answer = $134,250 b) If the company has budgeted to sell 20,000 units of Product SW in October then the total budgeted variable selling and administrative expenses for October will be: Answer. $45,000 Hint: Variable cost per unit = = $2.25 Total budgeted variable selling and administrative expenses = Variable cost per unit x Units sold The International Company makes and sells only one product, Product SW. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available: Variable Cost Monthly Fixed Per Unit Sold s0.70 $1.10 Cost Sales commissions. Shipping.. Advertising. $0.20 S14,000 S34,000 S11,000 $19,000 Executive salaries. Depreciation on office equipment. Other. $0.25 All expenses other than depreciation (no payment for Depreciation) are paid in cash in the month they are incurred. a) If the company has budgeted to sell 25,000 units of Product SW in July, then the total budgeted selling and administrative expenses for July will be: Answer. $134,250 Hint: Calculate Variable cost per unit = Answer = $2.25 Fixed cost = $78,000 Total budgeted selling and administrative expenses = Variable cost + Fixed cost Answer = $134,250 b) If the company has budgeted to sell 20,000 units of Product SW in October then the total budgeted variable selling and administrative expenses for October will be: Answer. $45,000 Hint: Variable cost per unit = = $2.25 Total budgeted variable selling and administrative expenses = Variable cost per unit x Units sold
Expert Answer:
Related Book For
Posted Date:
Students also viewed these organizational behavior questions
-
The McKnight Company is in the process of preparing its manufacturing overhead budget for the upcoming year. Sales are projected to be 42,000 units. Information about the various manufacturing...
-
The Carlyle Company is in the process of preparing its manufacturing overhead budget for the upcoming year. Sales are projected to be 40,000 units. Information about the various manufacturing...
-
The Schulman Company is in the process of preparing its manufacturing overhead budget for the upcoming year. Sales are projected to be 44,000 units. Information about the various manufacturing...
-
Which of the following is most nearly the mass of the Earth? (The radius of the Earth is about 6.4 106 m) A. 6 x 1024 kg B. 6 x 107 kg C. 6 x 103 kg D. 6 x 1033 kg E. 6 x 1036 kg
-
List and explain the five levels of needs that Maslow indicated exist in human beings plus the three related areas in his theory.
-
A small marble rolls horizontally with speed Vo off the top of a platform 2.75 m tall and feels no appreciable air resistance. On the level ground, 2.00 m from the base of the platform, there is a...
-
Determine the slope at \(A\) of the 2014-T6 aluminum shaft having a diameter of \(100 \mathrm{~mm}\). A T 1 m C B 0.5 m 0.5 m 8 kN 8 kN 1 m
-
Tax Prep Advisers, Inc., has forecasted the following staffing requirements for tax preparation associates over the next 12 months. Management would like three alternative staffing plans to be...
-
n 2.7 j2.4 a 320 20 V 2.7 j2.4 b 13 j06 86 j117 www N + 320 / 120 V 1.3 j06 56 77 www + www 320 /120 V 20 27 j24 13 j06 C 26 j37 www m www
-
Following are the income statement and balance sheet for Medtronic PLC. Consolidated Statement of Income, 12 Months Ended ($ millions) April 26, 2019 Net Sales $30,557 Costs and expenses Cost of...
-
In what ways do team composition and diversity influence team dynamics, and how can teams leverage the strengths and mitigate the challenges associated with demographic, cognitive, and experiential...
-
Professional Research In conducting year-end inventory counts, your audit team is debating the impact of the clients right of return policy both on inventory valuation and revenue recognition. The...
-
What is meant by the term economic development?
-
Girlie Glitter Co. is a UK-based chain of retail outlets whose products and services are marketed primarily at 313-year-old girls. The team who designed the concept took the theme of girl power as...
-
What are laws called that hold parties responsible for damage, injury, or death caused by defective products?
-
State whether you think a business would recognise the following as revenue. When would it be recognised? a Cash sale by business $20 000 b Sale of excess equipment by a restaurant $350 c...
-
what steps/How starbuck company take in their digital transformation. The pros and cons of their digital trasformation. write down the references too
-
Air pollution generated by a steel mill is an example of a) a positive production externality. b) a negative production externality. c) a public good. d) the free-rider problem. State and local taxes...
-
1. Define breakeven point. Why is the breakeven point important to managers? 2. Describe four different ways cost- volume- profit analysis could be useful to management. 3. The purchasing manager for...
-
Refer to your answer to S7-9. a. Compute the total number of dinner cruises that Crystal Cruiseline must sell to breakeven. b. Compute the number of regular cruises and executive cruises the company...
-
Marty's Entrees produces frozen meals, which it sells for $ 9 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the...
-
The concrete block weighing \(644 \mathrm{lb}\) is elevated by the hoisting mechanism shown, where the cables are securely wrapped around the respective drums. The drums, which are fastened together...
-
A metal hoop with a radius \(r=6\) in. is released from rest on the \(20^{\circ}\) incline. If the coefficients of static and kinetic friction are \(\mu_{s}=0.15\) and \(\mu_{k}=0.12\), determine the...
-
The pendulum has a mass of \(7.5 \mathrm{~kg}\) with center of mass at \(G\) and has a radius of gyration about the pivot \(O\) of \(295 \mathrm{~mm}\). If the pendulum is released from rest at...
Study smarter with the SolutionInn App