The Cottonwood Company for sales volumes of $300,000, $350,000, and $400,000, ba
ID: 2527851 • Letter: T
Question
The Cottonwood Company for sales volumes of $300,000, $350,000, and $400,000, based on the following data:
Required:
Labels and Amount Descriptions
Selling Expense Budget
Prepare a monthly flexible selling expense budget for Cottonwood Company for December, 2016. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.
Cottonwood Company
Monthly Selling Expense Budget
1
Sales volume
$300,000.00
$350,000.00
$400,000.00
2
Variable expense:
3
4
5
6
7
Fixed expense:
8
9
10
11
12
Sales commissions 6% of sales Sales manager's salary $120,000 per month Advertising expense $90,000 per month Shipping expense 1% of sales Miscellaneous selling expense $6,000 per month plus 1.5% of salesExplanation / Answer
Answers
Cottonwood Company
Monthly Selling Expense Budget
1
Sales volume
$ 3,00,000.00
$ 3,50,000.00
$ 4,00,000.00
2
Variable expense:
3 = 1 x 6%
Sales Commissions
$ 18,000.00
$ 21,000.00
$ 24,000.00
4 = 1 x 1%
Shipping expense
$ 3,000.00
$ 3,500.00
$ 4,000.00
5 = 1 x 1.5%
Miscellaneous Selling expenses
$ 4,500.00
$ 5,250.00
$ 6,000.00
6 = 3+4+5
Total variable expense
$ 25,500.00
$ 29,750.00
$ 34,000.00
7
Fixed expense:
8
Sales Salaries expense
$ 1,20,000.00
$ 1,20,000.00
$ 1,20,000.00
9
Advertising expense
$ 90,000.00
$ 90,000.00
$ 90,000.00
10
Miscellaneous Selling expenses
$ 6,000.00
$ 6,000.00
$ 6,000.00
11 = 8+9+10
Total fixed expense
$ 2,16,000.00
$ 2,16,000.00
$ 2,16,000.00
12 = 6+ 11
Total Selling expense
$ 2,41,500.00
$ 2,45,750.00
$ 2,50,000.00
Cottonwood Company
Monthly Selling Expense Budget
1
Sales volume
$ 3,00,000.00
$ 3,50,000.00
$ 4,00,000.00
2
Variable expense:
3 = 1 x 6%
Sales Commissions
$ 18,000.00
$ 21,000.00
$ 24,000.00
4 = 1 x 1%
Shipping expense
$ 3,000.00
$ 3,500.00
$ 4,000.00
5 = 1 x 1.5%
Miscellaneous Selling expenses
$ 4,500.00
$ 5,250.00
$ 6,000.00
6 = 3+4+5
Total variable expense
$ 25,500.00
$ 29,750.00
$ 34,000.00
7
Fixed expense:
8
Sales Salaries expense
$ 1,20,000.00
$ 1,20,000.00
$ 1,20,000.00
9
Advertising expense
$ 90,000.00
$ 90,000.00
$ 90,000.00
10
Miscellaneous Selling expenses
$ 6,000.00
$ 6,000.00
$ 6,000.00
11 = 8+9+10
Total fixed expense
$ 2,16,000.00
$ 2,16,000.00
$ 2,16,000.00
12 = 6+ 11
Total Selling expense
$ 2,41,500.00
$ 2,45,750.00
$ 2,50,000.00
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.