Question

For February, sales revenue is $583,000; sales commissions are 4% of sales; the sales manager's salary is $90,300; advertising expenses are $94,700; shipping expenses total 2% of sales; and miscellaneous selling expenses are $2,000 plus 1/2 of 1% of sales. T

otal selling expenses for the month of February are a.$221,980 b.$224,895 c.$187,000 d.$210,320

Answer 1

Answer:

Option b: $ 224,895

Calculations:

Sales	$      583,000
Expenses:
Sales commission (4% of sales)	$        23,320
Sales Manager salary	$        90,300
Advertising expenses	$        94,700
Shipping expenses	$        11,660
Miscellaneous selling expenses	$          4,915
Total expenses	$      224,895

Hence,

Option 'b' is correct, and rest all are incorrect.

In case of any doubt, please comment.