Question 7: Question 8: 7 TB MC Qu. 8-73 Schuepfer Inc. bases its selling and ad

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Question 7:

Question 8:

7 TB MC Qu. 8-73 Schuepfer Inc. bases its selling and administrative expense Schuepfer Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 2,100 units are planned to be sold in March. The variable selling and administrative expense is $4.60 per unit. The budgeted fixed selling and administrative expense is 35,710 per month, which includes depreciation of $3,600 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be: 10 points References Multiple Choice $41,770 $45,370 $9,660 $32,110

Explanation / Answer

1 Cash disbursements for selling and administrative expenses = (2100*4.6)+(35710-3600)= 41770 2 Units to be manufactured = 555000+65000-95000= 525000

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