Scotch,Inc

question 51

Multiple Choice

Scotch,Inc.has prepared the operating budget for the first quarter of the year.The company forecast sales of $45,000 in January,$55,000 in February,and $65,000 in March.Variable and fixed expenses are as follows: Variable Expenses:
Power cost (40% of sales)
Miscellaneous expenses: (15% of sales)
Fixed Expenses:
Salaries expense: $10,000 per month
Rent expense: $5,000 per month
Depreciation expense: $1,200 per month
Power cost/fixed portion: $800 per month
Miscellaneous expenses/fixed portion: $1,200 per month
Using the information above,calculate the amount of selling and administrative expenses for the month of February.

• A) $42,950
• B) $53,950
• C) $30,250
• D) $48,450

Recognize the implications of strategic restructuring methods like downsizing, divestiture, and turnaround.

Comprehend the essence and significance of strategic alliances and outsourcing agreements.

Acknowledge the importance of core competencies in strategic focus and business restructuring.

Grasp Michael Porter's generic strategies and their application in seeking competitive advantage.