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Reference: 07-11
the International Company Makes and Sells Only One

question 79

Multiple Choice

Reference: 07-11
The International Company makes and sells only one product, Product SW. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data
are available:  Variable Cost Per  Unit Sold  Monthly Fixed Cost  Sales commissions $0.70 Shipping $1.10 Advertising $0.20$14,000 Executive salaries $34,000 Depreciation on office equipment $11,000 Other $0.25$19,000\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Variable Cost Per } \\\text { Unit Sold }\end{array} & \text { Monthly Fixed Cost } \\\hline \text { Sales commissions } & \$ 0.70 & \\\hline \text { Shipping } & \$ 1.10 & \\\hline \text { Advertising } & \$ 0.20 & \$ 14,000 \\\hline \text { Executive salaries } & - & \$ 34,000 \\\hline \text { Depreciation on office equipment } & - & \$ 11,000 \\\hline \text { Other } & \$ 0.25 & \$ 19,000 \\\hline\end{array} All expenses other than depreciation are paid in cash in the month they are incurred.
-If the budgeted cash disbursements for selling and administrative expenses for November total $123,250, then how many units of Product SW does the company plan to sell in November (rounded to the nearest whole unit) :

Understand the relationship between technology and capital and their roles as factors of production.
Comprehend the significance of ethical practices for business success.
Recognize the role of innovation, risk-taking, and strategic alliances in entrepreneurship and business strategy.
Understand the concept of portfolio standard deviation and how it is affected by different types of stocks and their weightings.

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