The Puyer Corporation mekes and sells only one product called a Deb. The company

Question

The Puyer Corporation mekes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budgtfor next year. The following budget data are avallable: Variable Cost Monthly Fixed Cost Skipped Pe r Deb Sold $0.90 $1.40 Sales commissions Shipping Advertising Executive salaries Depreciation on office equipment Other $50,000 $0.20 60,000 $20,000 $40,000 All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the budgeted cash disbursements for selling and administrative expenses for April total $195,500, then how many Debs does the company plan to sell in April? Multiple Choice 14,400 units 8,000 units 10,200 units 18,200 units

Explanation / Answer

calculate plant to unit sell :

Cash disbursement for april = 195500

Variable selling and administrative cost per unit sell = 2.5 per unit

Fixed selling and administrative expense other than depreciation = 150000

195500 = 150000+2.5X

45500 = 2.5X

X( unit sell) = 18200 units

so answer is d) 18200 units

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