The Operating Expense Budget of MountainTop Creations Is Comprised of the Following

question 2

Multiple Choice

The operating expense budget of MountainTop Creations is comprised of the following budget formulas for its fixed and variable selling and administrative expense items: Selling expenses: $288,000 per year + $18 per unit
Administrative expenses: $552,000 per year + 2% of sales
If MountainTop's sales budget includes sales of 5,000 units each month at a price $50 per unit, the budgeted selling expense for August would be:

• A)$29,000.
• B)$114,000.
• C)$293,000.
• D)$378,000.

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Definitions:

Consumer Goods

Products and services that are purchased by individuals for personal or household use, rather than for manufacturing or reselling.

Progressive-Era Union

Labor unions during the Progressive Era aimed at improving working conditions, increasing wages, and reducing working hours for the labor force in the early 20th century.

Higher Wages

An increase in the amount of money paid to workers per unit of time, often seen as a way to improve living standards and stimulate economic growth.

Gilded Age

A period in the late 19th century known for the transformation of the United States through industrialization, urbanization, and the rise of big business, alongside stark social inequalities.