MM Co. predicts sales of $35,000 for May. MM Co. pays a sales manager a monthly

Question

MM Co. predicts sales of $35,000 for May. MM Co. pays a sales manager a monthly salary of $3200 plus a commission of 6% of sees dollars. MM's production manager recently found a way to reduce the amount of packaging MM uses. As a result, MM's product will receive better placement on store shelves and thus May sales are predicted to increase by 8%. In addition, MM's shipping costs are predicted to decrease from 4% of sales to 3% of sales. Compute budgeted sales and budgeted selling expenses for May assuming MM switches to this more sustainable packaging. Budgeted sales Budgeted selling expenses

Explanation / Answer

Budgeted sales 37800 =35000*1.08 Budgeted selling expenses 6602 =3200+(37800*6%)+(37800*3%)

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