For February, sales revenue is $700,000; sales commissions are 5% of sales; the sales manager's salary is $96,000; advertising expenses are $80,000; shipping expenses total 2% of sales; and miscellaneous selling expenses are $2,500 plus 1/2 of 1% of sales. Total selling expenses for the month of February are:

a. $231,000

b. $225,000

c. $227,500

d. $151,000

Question

Lucille Tate

Business

4 September, 05:48

For February, sales revenue is $700,000; sales commissions are 5% of sales; the sales manager's salary is $96,000; advertising expenses are $80,000; shipping expenses total 2% of sales; and miscellaneous selling expenses are $2,500 plus 1/2 of 1% of sales. Total selling expenses for the month of February are:

a. $231,000

b. $225,000

c. $227,500

d. $151,000

+3

Answers (1)

Know the Answer?

Big Nasty · Answer 1

Correct answer is A.

$231,000

Explanation:

Particulars Calculations Costs ($)

Sales Commissions 700,000 x 5% 35,000

Salary expenses 96,000

Advertising expenses 80,000

Shipping expenses 700,000 x 2% 14,000

Miscellaneous selling expenses 2,500 + 1/2 (700,000 x 1%) 6,000

Total Sales expenses for the month of February = 231,000