Pallen Company estimated sales of 11,000 units at $40 each, unit cost of goods sold of $22, marketing expense of $65,000 and a 10% commission on each unit sold. Administrative expense is budgeted at $50,000. What is total selling expense? A. $44,000

B. $84,000

C. $65,000

D. $109,000

Question

Business

Siena

20 February, 04:51

Pallen Company estimated sales of 11,000 units at $40 each, unit cost of goods sold of $22, marketing expense of $65,000 and a 10% commission on each unit sold. Administrative expense is budgeted at $50,000. What is total selling expense? A. $44,000

B. $84,000

C. $65,000

D. $109,000

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Answers (1)

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Wayne Ayers · Answer 1

D. $109,000

Explanation:

The total selling expense which is an element of the income statement is the sum of the marketing expense and the sales commission.

The sales commission as given is a percentage of the number of units sold.

Total selling expense

= $65,000 + (10% * $40 * 11,000)

= $65,000 + $44,000

= $109,000

Pallen Company estimated sales of 11,000 units at $40 each, unit cost of goods sold of $22, marketing expense of $65,000 and a 10% commission on each unit sold. Administrative expense is budgeted at $50,000. What is total selling expense? A. $44,000B. $84,000C. $65,000D. $109,000

Pallen Company estimated sales of 11,000 units at $40 each, unit cost of goods sold of $22, marketing expense of $65,000 and a 10% commission on each unit sold. Administrative expense is budgeted at $50,000. What is total selling expense? A. $44,000

B. $84,000

C. $65,000

D. $109,000