The International Company Makes and Sells Only One Product, Product

question 12

Multiple Choice

The International Company makes and sells only one product, Product SW. 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:
$\begin{array}{l}\begin{array} { | l | r | r | } \hline & \text { Variable cost per unit sold } & \text { Monthly fixed cost } \\\hline \text { Sales commissions } & \$ 0.70 & \\\hline \text { Shipping } & 1.10 & \\\hline \text { Advertising } & 0.20 & \$14,000 \\\hline \text { Executive salaries } & &34,000 \\\hline \begin{array} { l r } \text { Depreciation on office } \\\text { equipment }\end{array} & & 11,000 \\\hline \text { Other } & 0.25 & 19,000\\ \hline\end{array}\\\\\\\text { All expenses other than depreciation are paid in cash in the month they are incurred. }\end{array}$

-If the company has budgeted to sell 25,000 units of Product SW in July,what will be the total budgeted selling and administrative expenses for July?

• A) $56,250.
• B) $78,000.
• C) $123,250.
• D) $134,250.

---

Definitions:

Harvest

The act or duration of harvesting crops.

Grain

A small, hard, dry seed used as food, harvested from cereals or legumes.

Rats

While often considered in scientific and medical research contexts, in economics, could metaphorically reference unanticipated variables or detrimental elements affecting market dynamics.

Consume

The process of consuming a product or service to fulfill needs or desires.