Question

For February, sales revenue is $900,000; sales commissions are 5% of sales; the sales manager's salary is $96,000; advertising expenses are $80,000; shipping expenses total 2% of sales; and miscellaneous selling expenses are $2,100 plus 1/2 of 1% of sales. Total selling expenses for the month of February are:

Answer 1

sales commission : 5% of 900,000....0.05(900,000) = 45,000
managers salary : 96,000
ads : 80,000
shipping : 2% of 900,000...0.02(900,000) = 18,000
misc. 2100 + 0.5(0.01(900,000)) = 2100 + 4500 = 6600
total selling expenses :
45,000 + 96,000 + 80,000 + 18,000 + 6600 = 245,600 <==