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

question 54

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 total budgeted operating expense for the year would be:

• A)$612,000.
• B)$840,000.
• C)$1,080,000.
• D)$1,980,000.

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Definitions:

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The process of optimizing outcomes or advantages from a given set of resources or actions.

Compounded Annually

Interest that is calculated and added to the principal once every year.

Compounded Quarterly

A compound interest calculation where the frequency of compounding is every three months, affecting the overall growth of an investment or debt.

Periodic Interest Rate

The rate of interest earned in one compounding period.