X-Tel budgets sales of $100,000 for April, $120,000 for May, and $75,000 for June. In addition, sales commissions are 10% of sales dollars and the company pays a sales manager a salary of $10,000 per month. Sales commissions and salaries are paid in the month incurred. Prepare a selling expense budget for April, May, and June.

X-Tel budgets selling expense budget (Amounts in $)

Month April May June

Sales commission 10,000 12,000 7,500

Sales Manager's salaries 10,000 10,000 10,000

Total 20,000 22,000 17,500

Explanation:

The selling expense shows the forecast of sales related expenses. These include the manager's salaries and the sales commission. The sales commission is a percentage of projected. It may be computed as follows;

Sales commission for

April

= 10% * $100,000

= $10,000

May

= 10% * $120,000

= $12,000

June

= 10% * $75,000

= $7,500