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

question 2

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: $$\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Variable Cost Per } \\\text { Unit Sold }\end{array} & \text { Monthly Fixed Cost } \\\hline \text { Sales commissions } & \$ 0.70 & \\\hline \text { Shipping } & \$ 1.10 & \\\hline \text { Advertising } & \$ 0.20 & \$ 14,000 \\\hline \text { Executive salaries } & - & \$ 34,000 \\\hline \text { Depreciation on office equipment } & - & \$ 11,000 \\\hline \text { Other } & \$ 0.25 & \$ 19,000 \\\hline\end{array}$$ All expenses other than depreciation are paid in cash in the month they are incurred.
-If the company has budgeted to sell 25,000 units of Product SW in July, then the total budgeted selling and administrative expenses for July will be:

• A)$123,250.
• B)$56,250.
• C)$78,000.
• D)$134,250.

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Definitions:

Pessimistic Attributional Style

refers to a tendency to blame oneself for negative events and expect adverse outcomes, which can lead to depression and anxiety.

Self-Discipline

The ability to control one's feelings and overcome weaknesses; self-control that guides you to work toward your goals.

Information Overload

A condition in which someone receives too much information, often leading to difficulty in understanding issues or making decisions.

Positive Psychology

The scientific study of optimal human functioning; aims to discover and promote strengths and virtues that enable individuals and communities to thrive.