Julia's Candy Co Cash Sales Are Normally 25% of Total Sales and All

question 118

Multiple Choice

Julia's Candy Co. reports the following information from its sales account and sales budget:
$\begin{array}{lr}\text { Sales }&\text { May } & \$ 105,000 \\&\text { June } & 93,000\\\\\text { Expected }&\text { July } & \$ 90,000 \\\text { Sales: } \\&\text { August } & 110,000 \\&\text { September } & 120,000\end{array}$
Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale.
-If Julia's pays sales commission of 10% each month, in addition to fixed costs of $4,000, calculate the selling expenses for the third quarter.

• A) $32,000
• B) $36,000
• C) $40,000
• D) $44,000
• E) $48,000

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