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:

Opposable Big Toe

A distinct anatomical feature where the big toe can touch the other toes, aiding in gripping and manipulation of objects, seen in some primates.

Hominoid Fossil

Ancient remains or imprints of hominids and apes, crucial for understanding human evolution and the lineage of primates.

Human Evolutionary Line

The lineage leading to modern humans, detailing the biological and chronological development of human species over millions of years from primordial ancestors.

Bipedalism

Bipedalism is the ability to walk on two legs, a key feature that distinguishes humans and their ancestors from other primates and is considered a foundational trait in human evolution.