The correct answer is d. $214,160.
To calculate total selling expenses, we need to add up all of the separate expenses listed in the problem: sales commissions, sales manager's salary, advertising expenses, shipping expenses, and miscellaneous selling expenses.
Sales commissions = 4% of sales revenue = 0.04 x $562,000 = $22,480
Sales manager's salary = $85,800
Advertising expenses = $81,200
Shipping expenses = 4% of sales revenue = 0.04 x $562,000 = $22,480
Miscellaneous selling expenses = $2,200 + 0.005 x $562,000 = $5,610
Total selling expenses = $22,480 + $85,800 + $81,200 + $22,480 + $5,610 = $214,160.
For February, sales revenue is $562,000, sales commissions are 4% of sales, the sales manager's salary is $85,800, advertising expenses are $81,200, shipping expenses total 4% of sale, and miscellaneous selling expenses are $2,200 plus 1/2 of 1% of sales. Total selling expenses for the month of February are
a.$216,970
b.$191,680
c.$169,200
d.$214,160
1 answer
1 answer