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:

Observations

Data collected or measured during an experiment or survey.

Measurements

Measurements refer to the size, length, or amount of something, determined through quantitative comparison with a standard unit.

Element

A fundamental or essential constituent of a composite entity; in contexts like chemistry, an element is a substance that cannot be broken down into simpler substances by chemical means.

Variable

A feature or characteristic that can vary among individuals or over time.