The selling and administrative expense budget of Breckinridge Corporation is bas

Question

The selling and administrative expense budget of Breckinridge Corporation is based on budgeted unit sales, which are 5,500 units for June. The variable selling and administrative expense is $1.00 per unit. The budgeted fixed selling and administrative expense is $101,200 per month, which includes depreciation of $6,050 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the June selling and administrative expense budget should be: A) $100,650 B) $106,700 C) $5,500 D) $95,150

Explanation / Answer

The cash disbursements for selling and administrative expenses on the June selling and administrative expense budget should be: A) $100,650

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