LOSLS, DIoauet costs, and sunk costs fixed costs, variable costs, and mixed cost
ID: 2606833 • Letter: L
Question
LOSLS, DIoauet costs, and sunk costs fixed costs, variable costs, and mixed costs 5. Ex.06-168 Selling Expense Budget Sales volume Labels and Amount Descriptions $300,000.00 $350,000.00 $400,000.00 Labs December 31, 2016 For the Month Ending December 31, 2016 2 Variable expense: The Cottonwood Company for sales volumes of $300,000, $350,000, and $400,000, based on the following data Sales commissions Sales manager's salary Advertising expense Shipping expense 6% of sales $120.000 per month $90,000 per month 1% of sales $6,000 per month plus 1.5% of sales Advertising expense Miscellaneous selling Fixed expense Sales salaries expense Sales volume Shipping expense expense Required: 12 Prepare a monthly flexible selling expense budget for Cottonwood Company for December, 2016. Refer to the lists of Labels and Amount Total selling expense 6. MC.04-156 The difference between the current sales revenue and the sales at the break-even point is called the operating leverage price factorExplanation / Answer
Answer
1
Sales Volume
300000
350000
400000
2
Variable Expense:
3= 1 x 6%
Sales Commission
18000
21000
24000
4 = 1 x 1%
Shipping Expense
3000
3500
4000
5 = 1 x 1.5%
Miscellaneous Selling Expenses
4500
5250
6000
6 = 3+4+5
Total variable expenses
25500
29750
34000
7
Fixed Expenses:
8
Sales Salaries Expenses
120000
120000
120000
9
Advertising expense
90000
90000
90000
10
Miscellaneous Selling Expenses
6000
6000
6000
11=8+9+10
Total Fixed Expenses
216000
216000
216000
12 = 6 + 11
Total Selling Expenses
241500
245750
250000
1
Sales Volume
300000
350000
400000
2
Variable Expense:
3= 1 x 6%
Sales Commission
18000
21000
24000
4 = 1 x 1%
Shipping Expense
3000
3500
4000
5 = 1 x 1.5%
Miscellaneous Selling Expenses
4500
5250
6000
6 = 3+4+5
Total variable expenses
25500
29750
34000
7
Fixed Expenses:
8
Sales Salaries Expenses
120000
120000
120000
9
Advertising expense
90000
90000
90000
10
Miscellaneous Selling Expenses
6000
6000
6000
11=8+9+10
Total Fixed Expenses
216000
216000
216000
12 = 6 + 11
Total Selling Expenses
241500
245750
250000
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