The following information is available for Pioneer Company Sales price per unit

Question

The following information is available for Pioneer Company Sales price per unit is $90. November and December, sales were budgeted at 3,160 and 3,580 units, respectively. Variable costs are 12 percent of sales (4 percent commission, 2 percent advertising, 6 percent shipping) Fixed costs per month are sales salaries, $4,500; office salaries, $2,000; depreciation, $2,800; building rent,$3,200; insurance, $1,400; and utilities, $600. Required Determine Pioneer's budgeted selling and administrative expenses for November and December. November December Total Budgeted Selling and Administrative Expenses

Explanation / Answer

Particulars 3160 Units 3580 Units Sale Price 90 90 Total Sales 284400 322200 Variable Cost Commission 4% 11376 12888 Advertising 2% 5688 6444 Shipping 6% 17064 19332 Fixed Costs Sales Salaries 4500 4500 Office Salaries 2000 2000 Depreciation 2800 2800 Rent 3200 3200 Insurance 1400 1400 Utilities 600 600 Total Expenses 48628 53164

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