Thursday, November 6, 2014

What would the company's total selling expenses be for the month of Marchin the example below?Sales revenue is $1,000,000; sales commissions are 4%...

If you have entered all of the information properly, the
total selling expenses for the month should be
$217,100.


According to the
link below, the way to find total selling expenses is to find all of the expenses that
are linked to the sale of the firm's products.  As the link
says:



Selling
expenses include any expense incurred in an attempt to sell the products. Expenses such
as advertising, salaries of sales personnel, and sales commissions would be
included.



Given this
definition, you would need to add


  • Sales
    commissions of $40,000.  This is the product of 1,000,000 times .04 in
    commissions.

  • The sales manager's salary of
    $80,000.

  • The $75,000 of
    advertising.

  • Shipping costs of $10,000.  This is the
    product of 1,000,000 in sales times .01 in shipping
    costs.

  • $2,100 in miscellaneous selling
    expenses.

  • $10,000 (a further .01 of $1,000,000) in
    further selling expenses.

All of these added
together make $217,100.

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