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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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  1. 18 April, 08:17
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    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
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