Ficat Company expects to sell 52,000 units of its product in the coming year. Ea
ID: 2345108 • Letter: F
Question
Ficat Company expects to sell 52,000 units of its product in the coming year. Each unit sells for $45. Sales brochures and supplies for the year are expected to cost $8,500. Two sales representatives cover the southeast region. Each representative's base salary is $20,500, and each earns a sales commission of 5 percent of the selling price of the units he or she sells. The sales representatives supply their own transportation; they are reimbursed for travel at a rate of $0.60 per mile. The company estimates that the sales representatives will drive a total of 79,000 miles next year.
From the information provided, calculate Ficat Company's budgeted selling expenses for the coming year.
$
Explanation / Answer
Ficat Company's budgeted selling expenses = $8,500 +$20,500*2 +5%*45*52000 +$0.60*79,000 = $213,900.00
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