For February sales revenue is 700000 sales commissions are 5

For February, sales revenue is $700,000; sales commissions are 5% of sales; the sales manager\'s salary is $96,000; advertising expenses are $90,000; shipping expenses total 2% of sales; and miscellaneous selling expenses are $2,500 plus 1/2 of 1% of sales. Total selling expenses for the month of February are

a. $241,000

b. $235,000

c. $237,500

d. $161,000

Solution

Total Selling expense for the month of February are $ Sales commission (700000*5%) 35000 Sales manager\'s salary 96,000 Advertising expense 90,000 Shipping expense (700,000*2%) 14000 Miscellaneous Selling expense (2500+700,000*1/2*1%) 6,000 total selling expense for the month of Feb 241000 option a $241,000 answer