Comma CoMakes and Sells Widgets Expenses Are Paid in the Month Incurred

question 42

Multiple Choice

Comma Co.makes and sells widgets.The company is in the process of preparing its selling and administrative expense budget for the month.The following budget data are available: $\begin{array}{lll}\text { Item }&\text { Variable Cost Per Unit SoldMonthly }&\text { Fixed cost}\\\hline\text { Sales commissions } & \$ 1 & \$ 10,000 \\\text { Shipping } & \$ 3 & \\\text { Advertising } & \$ 4 &\\\text { Executive salaries } & & \$ 120,000 \\\text { Depreciation on office equipment } & & \$ 4,000 \\\text { Other } & \$ 2 & \$ 6,000\end{array}$ Expenses are paid in the month incurred.If the company has budgeted to sell 80,000 widgets in October, how much is the total budgeted selling and administrative expenses for October?

• A)$940,000
• B)$140,000
• C)$930,000
• D)$800,000

---

Definitions:

Physiological Changes

Physiological Changes are modifications in the body's normal biological functions or processes.

Nonverbal Indicator

A form of communication without the use of spoken language, conveyed through body language, gestures, facial expressions, and other physical cues.

Kinesics

The study of body motion or body behavior as a form of non-verbal communication.

Proxemics

The examination of how humans utilize space and the impact that the density of a population has on behavior, communication, and the way people interact with one another.