Razmataz Company Makes and Sells Umbrellas Expenses Are Paid in the Month Incurred

question 9

Multiple Choice

Razmataz Company 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: $\begin{array}{c}\begin{array}{l}\\\underline{\text { Item}}\\\text {Sales commissions}\\text {Shipping}\\\text {Advertising}\\\text {Depreciation on office equipment}\\\text {Other operating expenses}\end{array}\begin{array}{c}\text {Variable Cost}\\\underline{\text {Per Unit Sold}}\\\$ 0.60 \\\$ 1.20 \\ \$ 0.30 \\\\ \$ 0.35 \end{array}\begin{array}{c}\\\underline{\text { Monthly Fixed Cost }}\\\$3,000\\\\\\\$ 4,000 \\\$ 34,000\end{array}\end{array}$
Expenses are paid in the month incurred.If the company has budgeted to sell 2,000 umbrellas in October, how much is the total budgeted variable selling expenses for October?

• A)$41,000
• B)$4,600
• C)$4,900
• D)$1,800

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Definitions:

High Plateaus

Elevated flat-topped areas of land that rise sharply above the surrounding land on at least one side, often formed by tectonic activities or erosion.

Seafloor Spreading

The process by which new oceanic crust is formed at mid-ocean ridges and slowly moves away from the ridge.

Subduction-related Magmatism

The process of magma generation and volcanic activity that occurs in zones where one tectonic plate is subducted under another.

Continental Collision

The process by which two continental plates collide, leading to the formation of mountains and other geological features.