Homework SourseCarl llc has base sales of 100 and salaries expense is 61 of
Carl llc has base sales of 100 and salaries expense is 61% of sales. Assuming a 10% increasee in sales, salaries expense for the first pro forma year is ?
A. 66.10
B. 67.10
C. 68.10
D none of the above
Carl llc has base sales of 100 and salaries expense is 61% of sales. Assuming a 10% increasee in sales, salaries expense for the first pro forma year is ?
A. 66.10
B. 67.10
C. 68.10
D none of the above
A. 66.10
B. 67.10
C. 68.10
D none of the above
Solution
Answer:
Base Sales = $100
Salaries Expense = 61% of Sales
Increased Sales = 100 * 1.10 = $110
Proforma Salaries Expense = $110 * 61% = $67.10
Salaries Expense for First proforma year is 67.10.
