Wallen Company Estimated Sales of 12,000 Units at $44 Each

question 88

Multiple Choice

Wallen Company estimated sales of 12,000 units at $44 each, unit cost of goods sold of $22, marketing expense of $70,000, and a 12% commission on the price for each unit sold. Administrative expense is budgeted at $50,000.
-Refer to the Figure.What is Wallen's budgeted operating income?

• A)$80,640
• B)$112,000
• C)$198,000
• D)$281,000

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Definitions:

Personal Selling Process

A series of steps that a salesperson follows to engage potential buyers, understand their needs, make a sales presentation, address objections, and close the sale.

HVAC System

Heating, Ventilation, and Air Conditioning systems that manage the climate and air quality in buildings.

Sales Presentation

A detailed pitch or demonstration aimed at persuading potential customers to purchase a product or service, often involving a structured argument and visual aids.

Team Selling Approach

A sales strategy where a group of individuals with different expertise collaborate to meet the specific needs of a customer.