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

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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) :

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Definitions:

Binding Contracts

Legally enforceable agreements between two or more parties with specific obligations.

Individual Payoffs

Refers to the benefits or rewards an individual receives as a result of making a particular decision or taking a specific action.

Fare Cuts

Reductions in the prices charged for transportation services, such as buses, trains, or airplanes, typically to attract more customers or achieve other strategic goals.

Independent Action

Decisions or actions taken by an individual or entity without coordination or influence from others.

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