Use the Following to Answer Questions

question 62

Multiple Choice

Use the following to answer questions
Hepburn Corporation's sales price is $30 per unit. Unit sales information is presented below:
Management estimates that 2% of credit sales are uncollectible. Of the remaining credit sales, 30 percent are collected in the month of sale and the remainder in the following month. The March 31 ending inventory is 5,500 units, and Hepburn wants to have 10% of the next month's sales in ending finished goods inventory.
-Hepburn's SG&A expenses,paid as incurred,are $100,000 per month plus 5 per cent of sales.What amount should Hepburn budget for SG&A for April?

• A)$230,000
• B)$178,000
• C)$160,000
• D)$102,600

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Definitions:

Food Products

Items prepared from edible raw materials intended for human consumption, including perishable groceries, packaged snacks, and beverages.

Packaged Salads

Pre-prepared salads that are sold in sealed containers for convenience, often found in supermarkets or delis.

Brand Equity

Added value that a respected and successful name gives to a product.

Financial Gain

The increase in monetary resources, often resulting from business activities, investments, or other financial transactions.