The following information is available for Pioneer Company: Sales price per unit

Question

The following information is available for Pioneer Company: Sales price per unit is $130. November and December, sales were budgeted at 3,120 and 3,590 units, respectively. Variable costs are 11 percent of sales (5 percent commission, 2 percent advertising, 4 percent shipping). Fixed costs per month are sales salaries, $5,900; office salaries, $2,900; depreciation, $2,500; building rent, $3,500; insurance, $1,400; and utilities, S600 Required: Determine Pioneer's budgeted selling and administrative expenses for November and December November December Total Budgeted Selling and Administrative Expenses

Explanation / Answer

Particulars November December Sales Qty 3120 3590 Sales Price 130 130 Total Sales 405600 466700 Variable Costs Commission 5%        20,280.00     23,335.00 Advertising 2%          8,112.00       9,334.00 Shipping 4%        16,224.00     18,668.00 Fixed Costs Sales Salaries          5,900.00       5,900.00 Office Salaries          2,900.00       2,900.00 Depreiciation          2,500.00       2,500.00 Building Rent          3,500.00       3,500.00 Insurance          1,400.00       1,400.00 Utilities              600.00           600.00 Total        61,416.00     68,137.00

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