1. The following budget information is available for the HD Sales Company (HDC) for January: Sales: $320,000 Freight out: $.25 per unit sold Depreciation on Admin. Equipment: $10,000 Sales & Admin. Salaries: $40,000 + 2% of sales Advertising: $12,000 Depreciation on Manuf. Equip.: $15,000 Lease on Sales Building: $45,000 Miscellaneous Selling Expenses: $5,000 All operating expenses are paid in cash in the month incurred. If HDC expects to sell 20,000 units of inventory, the total budgeted selling and administrative expenses would be what amount on the January pro forma income statement?
1. The following budget information is available for the HD Sales Company (HDC) for January: Sales: $320,000 Freight out: $.25 per unit sold Depreciation on Admin. Equipment: $10,000 Sales & Admin. Salaries: $40,000 + 2% of sales Advertising: $12,000 Depreciation on Manuf. Equip.: $15,000 Lease on Sales Building: $45,000 Miscellaneous Selling Expenses: $5,000 All operating expenses are paid in cash in the month incurred. If HDC expects to sell 20,000 units of inventory, the total budgeted selling and administrative expenses would be what amount on the January pro forma income statement?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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