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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