Darkwood Inc. produces and markets bookshelves. The sales forecast indicates tha
ID: 2470154 • Letter: D
Question
Darkwood Inc. produces and markets bookshelves. The sales forecast indicates that 30,000 bookshelves will be sold at a selling price of $45 per unit. Darkwood expects to incur $2.80 in variable selling and administrative expenses per unit. In addition, the company anticipates the following fixed expenses:
Administrative salaries $80,000
Office equipment depreciation $ 9,000
Advertising $25,000
The Total budgeted Sales and Administrative Expense Budget for Darkwood Inc. is
(Hint…be sure to read carefully of what I'm asking for within the budget!)
$189,000
$198,000
$9,000
$114,000
$189,000
$198,000
$9,000
$114,000
Explanation / Answer
Total budgeted Sales and Administrative Expense Budget for Darkwood Inc.=30,000*2.80+Administrative salaries $80,000+ Advertising $25,000=$189,000.
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