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

question 98

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 20,000 units of Product SW in October, then the total budgeted variable selling and administrative expenses for October will be:

• A)$40,000.
• B)$78,000.
• C)$56,250.
• D)$45,000.

Identify characteristics and behaviors of high-high style leaders.

Understand the implications of various leadership behaviors on team dynamics and performance.

Distinguish between different components on Blake and Mouton's Leadership Grid.

Learn about significant leadership behavior studies such as the Ohio State studies, University of Michigan studies, and the leadership behavior of Blake and Mouton.

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Definitions:

Markup

The amount added to the cost price of goods to cover overhead and profit; calculated as a percentage of the cost.

Net Sales

The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and discounts.

Beginning Inventory

The value of goods available for sale at the start of an accounting period.

Market Value

Market value is the current price at which an asset or service can be bought or sold.