The following information is available for Pioneer Company: • Sales price per unit is $120. • November and December sales were budgeted at 2,920 and 3,530 units, respectively. • Variable costs are 10 percent of sales (5 percent commission, 3 percent advertising, 2 percent shipping). • Fixed costs per month are sales salaries, $5,500; office salaries, $2,200; depreciation, $2,500; building rent, $3,200; insura $1,500; and utilities, $800. Required: Determine Pioneer's budgeted selling and administrative expenses for November and December.
The following information is available for Pioneer Company: • Sales price per unit is $120. • November and December sales were budgeted at 2,920 and 3,530 units, respectively. • Variable costs are 10 percent of sales (5 percent commission, 3 percent advertising, 2 percent shipping). • Fixed costs per month are sales salaries, $5,500; office salaries, $2,200; depreciation, $2,500; building rent, $3,200; insura $1,500; and utilities, $800. Required: Determine Pioneer's budgeted selling and administrative expenses for November and December.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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