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

Recognize the ethical issues associated with centralized organizational structures and communication barriers.

Understand the concept of power in organizational relationships and its ethical implications.

Learn about the influence of group norms and informal channels on ethical behaviors and organizational culture.

Understand the concepts of intrinsic and extrinsic motivation and their roles in behavior.

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Definitions:

Purchasing Organization

An entity within a company responsible for acquiring goods and services needed for business operations.

Supply Management Trends

The emerging patterns and shifts in practices related to procuring, managing, and optimizing an organization's supply chain to enhance efficiency, reduce costs, and improve relationships with suppliers.

Online Auctions

A virtual auction process where goods or services are sold to the highest bidder through a website or online platform.

Key Suppliers

Critical vendors or providers whose goods or services are essential to a company's operations, often contributing significantly to the product or service output.