Question

Sales commissions are 10% of budgeted sales and the sales manager's salary is $1,000 per month. If budgeted sales are $50,000 for January, the total selling expenses budget for January is_____________.

Answer 1

Answer:

Total selling cost= $6,000

Explanation:

Giving the following information:

Sales commissions are 10% of budgeted sales and the sales manager's salary is $1,000 per month. The budgeted sales are $50,000 for January.

We will calculate variable and fixed costs separate:

Variable cost= sales*0.10= 50,000*0.10= 5,000

Fixed costs= 1,000

Total selling cost= 6,000