Pearl,Inchas Prepared the Operating Budget for the First Quarter of the Year.The

question 118

Multiple Choice

Pearl,Inc.has prepared the operating budget for the first quarter of the year.The company forecast sales of $40,000 in January,$50,000 in February,and $60,000 in March.Variable and fixed selling and administrative expenses are as follows:
Variable Expenses:
Power cost (30% of sales)
Miscellaneous expenses: (5% of sales)
Fixed Expenses:
Salaries expense: $8000 per month
Rent expense: $5000 per month
Depreciation expense: $1400 per month
Power cost/fixed portion: $800 per month
Miscellaneous expenses/fixed portion: $1200 per month
Calculate total budgeted selling and administrative expenses for the month of January.

• A)$30,400
• B)$37,400
• C)$14,000
• D)$33,900

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Definitions:

Serotonin

A neurotransmitter involved in the regulation of mood, appetite, sleep, memory, and learning.

Norepinephrine

A neurotransmitter and hormone involved in the body's response to stress, also playing a key role in alertness and the fight-or-flight response.

Id

In psychoanalytic theory, the part of the personality that contains our primitive impulses such as sex, anger, and hunger, and operates on the pleasure principle.

Pleasure Principle

A concept in psychoanalytic theory referring to the instinctual seeking of pleasure and avoidance of pain to satisfy biological and psychological needs.