Ulster Company expects to sell 50,000 units of its product in the coming year. E

ID: 2345532 • Letter: U

Question

Ulster 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 $9,000. Two 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 $0.60 per mile. The company estimates that the sales representatives will drive a total of 75,000 miles next year.

From the information provided, calculate Ulster Company's budgeted selling expenses for the coming year.
$________

Explanation / Answer

Budgeted selling expenses:

Sales brochures and supplies

9000

sales salaries

40000

(20,000*2)

commission

112500

(50,000*45*0.05)

travel reimbursement

45000

(75,000*0.60)

total

206500