X-Tel budgets sales of $70,000 for April, $120,000 for May, and $80,000 for June. In addition, sales commissions are 10% of sales dollars and the company pays a sales manager a salary of $7,000 per month. Sales commissions and salaries are paid in the month incurred. Prepare a selling expense budget for April, May, and June.

Question

Donald Elliott

Business

18 April, 08:08

X-Tel budgets sales of $70,000 for April, $120,000 for May, and $80,000 for June. In addition, sales commissions are 10% of sales dollars and the company pays a sales manager a salary of $7,000 per month. Sales commissions and salaries are paid in the month incurred. Prepare a selling expense budget for April, May, and June.

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Laney Jensen · Answer 1

Instructions are listed below.

Explanation:

Giving the following information:

X-Tel budgets sales of $70,000 for April, $120,000 for May, and $80,000 for June. In addition, sales commissions are 10% of sales dollars and the company pays a sales manager a salary of $7,000 per month. Sales commissions and salaries are paid in the month incurred.

April:

Sales comission = 0.10*70,000 = 7,000

Sales manager salary = 7,000

Total = 14,000

June:

Sales comission = 0.10*120,000 = 12,000

Sales manager salary = 7,000

Total = 19,000

July:

Sales comission = 0.10*70,000 = 8,000

Sales manager salary = 7,000

Total = 15,000