The Cottonwood Company manufactures mattresses and has for sales volumes of $300
ID: 2559877 • Letter: T
Question
The Cottonwood Company manufactures mattresses and has for sales volumes of $300,000, $350,000, and $400,000, based on the following data:
Required:
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
Cottonwood Company Monthly Selling Expenses Budget For the Month Ending December 31, 2016 1 Sales volume $ 300000 350000 400000 2 Variable expense: 3 Sales commissions 18000 21000 24000 4 Shipping expense 3000 3500 4000 5 Miscellaneous selling expense 4500 5250 6000 6 Total variable expense $ 25500 29750 34000 7 Fixed expense: 8 Sales manager's salary 120000 120000 120000 9 Advertising expense 90000 90000 90000 10 Miscellaneous selling expense 6000 6000 6000 11 Total fixed expense $ 216000 216000 216000 12 Total selling expense $ 241500 245750 250000
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