Zhang Industries sells a product for $725. Unit sales for May were 400 and each
ID: 2480422 • Letter: Z
Question
Zhang Industries sells a product for $725. Unit sales for May were 400 and each month's sales are expected to exceed the prior month's results by 3%. Zhang pays a sales manager a monthly salary of $3,600 and a commission of 2% of sales. Compute the projected selling expense to be reported on the selling expense budget for the manager for month ended June 30.
$11,140.
$9,226.
$9,574.
$9,196.
$9,400.
Zhang Industries sells a product for $725. Unit sales for May were 400 and each month's sales are expected to exceed the prior month's results by 3%. Zhang pays a sales manager a monthly salary of $3,600 and a commission of 2% of sales. Compute the projected selling expense to be reported on the selling expense budget for the manager for month ended June 30.
Explanation / Answer
Hey Dear Student !!
Expected Selling Expense for the June month would be calculated as follows:
No of Goods Sold in May: 400
Expected increase: 3% over previous months sales
June month sale:
400+ 400X3%= 412 Units
Amount: 412 X 725= $298700
Total Selling Expense: Salary+Commission
3600+ 298700X 2%= $9574
Answer: $9574
Pleasure Teaching You !!
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