The Stacy Company Makes and Sells a Single Product, Product

question 13

Multiple Choice

The Stacy Company makes and sells a single product, Product R. Budgeted sales for April are $300,000. Gross margin is budgeted at 30% of sales dollars. If the net income for April is budgeted at $40,000, the budgeted selling and administrative expenses are:

• A)$133,333.
• B)$102,000.
• C)$50,000.
• D)$78,000.