Question

1. Call budgets sales of its truck tires at $150 per tire and estimates that 10000...

1. Call budgets sales of its truck tires at $150 per tire and estimates that 10000 tires can be sold during the coming year. Variable costs per tire are $80 and Call desires a profit of $32 per tire. The target cost per tire is

$150.

$118.

$80.

$70.

2. S Company makes and sells widgets. The company is in the process of preparing its Selling and Administrative Expense Budget for the month. The following budget data are available:

         Item Variable Cost
Per Unit Sold
Monthly Fixed Cost
Sales commissions $3 $5000
Shipping $3
Advertising $5
Executive salaries $60200
Depreciation on office equipment $2500
Other $2 $3000


Expenses are paid in the month incurred. If the company has budgeted to sell 39100 widgets in October, how much is the total budgeted selling and administrative expenses for October?

$579000

$70700

$573500

$508300

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