The International Company Makes and Sells Only One Product, Product

question 27

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 budgeted cash disbursements for selling and administrative expenses for November total $123,250,then how much was the total selling and administrative budget for November?

• A) $123,250.
• B) $134,250.
• C) $168,250.
• D) $187,250.

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Definitions:

Specialized Knowledge

Expertise or skills focused on a particular area or discipline.

Secondary Labor Market

A segment of the labor market consisting of low-paying jobs with poor working conditions, minimal job security, and little potential for advancement, often contrasted with the primary labor market.

Free Market

Prices are determined only by supply and demand.

Workers' Interests

The needs, desires, and concerns of employees, often focusing on fair wages, safe working conditions, and job security.