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

---

Definitions:

Supply Chain Profit

The total profit achieved by all members of a supply chain, from raw material suppliers to end retailers, through the production and sale of goods.

Pricing Decisions

The process of determining the price at which a company's products or services will be offered to the market, affecting demand, sales, and profitability.

Maximizing Profit

The process of implementing strategies and making decisions that lead to the highest possible profit margin.

Lot Sizing Decisions

The process of determining the optimal order quantity that balances ordering costs with holding costs in inventory management.