Dart Inc Makes and Sells Umbrellas Expenses Are Paid in the Month Incurred

question 42

Multiple Choice

Dart Inc. makes and sells umbrellas. 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: $\begin{array}{lcc}&\text {Variable Cost Per Unit Sold}&\text {Monthly Fixed Cost}\\\text { Sales commissions } & \$ 0.60 & \$ 6,000 \\\text { Shipping } & 1.20 & \\\text { Advertising } & 0.30 & \\\text { Executive salaries } & &40,000 \\\text { Depreciation on office equipment } & & 8,000\\\text { Other }&0.35 & 28,000\end{array}$ Expenses are paid in the month incurred. If the company has budgeted to sell 8000 umbrellas in October how much is the total budgeted variable selling and administrative expenses for October?

• A) $16800
• B) $18400
• C) $101600
• D) $19600

---

Definitions:

Stereotypes

Commonly accepted yet inflexible and simplistic perceptions or notions about a specific kind of individual or object.

Negative

Characterized by the absence rather than the presence of distinguishing qualities, or expressing denial, refusal, or prohibition.

Salience

Being obvious or standing out.

Stereotype Formation

The process of creating oversimplified and generalized views about groups of people based on limited information.