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

question 102

Multiple Choice

Zelia,Inc.has prepared the operating budget for the first quarter of the year.The company forecast sales of $50,000 in January,$60,000 in February,and $70,000 in March.Variable and fixed expenses are as follows: Variable Expenses:
Power cost (20% 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: $500 per month
Miscellaneous expenses/fixed portion: $1000 per month
Using the information above,calculate the amount of budgeted selling and administrative expenses for the month of February.

• A) $28,400
• B) $33,400
• C) $15,000
• D) $30,900

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Definitions:

Bond Cash Flows

The series of cash payments to the bondholder throughout the life of the bond, typically consisting of periodic interest payments and the return of principal at maturity.

Syndication

The process of selling shares or interests in a venture to multiple individuals or entities to raise capital.

Underwriting

The process by which lenders and insurers evaluate the risks involved in insuring or lending to individuals or businesses and establish the terms of coverage or loans.

Capital Gains Yield

The price appreciation component of the total return on an investment, represented as a percentage of the initial investment cost.