The Ferguson Company Makes and Sells a Single Product

question 41

Multiple Choice

The Ferguson Company makes and sells a single product. The company has estimated the following costs in order to prepared their selling and administrative expenses budget for 2009: If the sales budget indicates that 120,000 units will be sold in 2009, the total budgeted selling and administrative expenses will be:

• A) $329,000
• B) $345,000
• C) $198,000
• D) $147,000

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Definitions:

Higher Income

A level of earnings or revenue that is above average or an increase in financial earnings.

Marginal Utility

Marginal Utility is the additional satisfaction or benefit gained from consuming one more unit of a product or service.

Total Utility

Total contentment experienced through the use of a particular volume of goods or services.

Social Security System

The federal system of social insurance programs. It includes three separate programs that are financed through separate funds: the Old Age and Survivors Insurance (OASI) program, the Disability Insurance (DI) program, and the Health Insurance (HI), or Medicare program.