The International Company Makes and Sells Only One Product, Product

question 62

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 20,000 units of Product SW in October,what will be the total budgeted variable selling and administrative expenses for October?

• A) $40,000.
• B) $45,000.
• C) $56,250.
• D) $78,000.

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