High Trails manufactures backpacks for adventurers. Totals sales for the year are budgeted at 2,400 backpacks, at a price of $90 each. Variable selling expenses include commissions ( 3% of sales price) and delivery costs ( $12 per backpack). Annual fixed selling and administrative expenses include general liability insurance ( $9,000), sales fleet depreciation ( $135,000), administrative salaries ( $270,000), and rent on the office building ( $63,000). High Trails pays all costs as they are incurred. What is the amount of cash budgeted for Selling and Administrative expenses for the year? Select one: a. $377,280 b. $368,280 c. $477,000 d. $512,280 e. None of these options are correct.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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High Trails manufactures backpacks for adventurers. Totals sales for the year are budgeted at 2,400 backpacks, at a price of $90 each. Variable selling expenses include commissions ( 3% of sales price) and delivery costs ( $12 per backpack). Annual fixed selling and administrative expenses include general liability insurance ( $9,000), sales fleet depreciation ( $135,000), administrative salaries ( $270,000), and rent on the office building ( $63,000). High Trails pays all costs as they are incurred.

What is the amount of cash budgeted for Selling and Administrative expenses for the year?

Select one:
a. $377,280
b. $368,280
c. $477,000
d. $512,280
e. None of these options are correct. 
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