Mason LLC has based sales of 100 and maintained expenses of

Mason LLC has based sales of 100 and maintained expenses of 33% of sales. Assuming a 15% increase in sales maintained expenses for the first pro forma ?

A. 35.95

B. 36.95

C. 37.95

D. 38.95

Show me the steps on how to solve it

Solution

New sales=$100*115%=$115

Since expenses are 33% of sales

Hence  maintained expenses for the first pro forma=$115*33%

which is equal to

=$37.95