Scotch, Inc has prepared the operating budget for the first quarter of the year
The company forecast sales of $50,000 in January, $60,000 in February, and $70,000 in March. Variable and fixed expenses are as follows:
Variable Expenses:
Power cost (20% of sales)
Miscellaneous expenses: (5% of sales)
Fixed Expenses:
Salaries expense: $8,000 per month
Rent expense: $5,000 per month
Depreciation expense: $1,400 per month
Power cost/fixed portion: $500 per month
Miscellaneous expenses/fixed portion: $1,000 per month
Using the information above, calculate the amount of selling and administrative expenses for the month of February.
A) $28,400
B) $33,400
C) $15,000
D) $30,900
D .D) Calculation of total selling and administrative expenses for the month of February:
You might also like to view...
Answer the following statement(s) true (T) or false (F)
Emotional bias is not an underlying issue in valuing a business.
Since judgment and a tolerance for ambiguity are important, managerial processes typically have more human actors than strategic processes
Indicate whether the statement is true or false
If the historical growth rate of EPS is less than the sales growth rate, project future earnings at the historical earnings rate or ____________________.
Fill in the blank(s) with the appropriate word(s).
All states recognize that a party may escape from a contract if the inadequacy of consideration shocks the conscience of the court.
a. true b. false