1. Calculate the total budgeleu LUJ Prepare a cost of goods sold budget for Play
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1. Calculate the total budgeleu LUJ Prepare a cost of goods sold budget for Play-Disc for the year. 3. What if the beginning inventory of finished goods was $75,200 (for 16,000 units)? How wo the cost of direct materials, direct labor, and overhead. 2. ow wo that affect the cost of goods sold budget? (Assume Play-Disc uses the FIFO method.) Cornerstone Exercise 8.8 Marketing Expense Budget Timothy Donaghy has developed a unique formula for growing hair. His proprietary lotion, used regularly for 45 days, will grow hair in bald spots (with varying degrees of success). Timo thy calls his lotion Hair-Again and is selling it via the telephone and Internet. His major form of marketing is through 15-minute infomercials and Internet advertising. Timothy sells each 16 ounce bottle of Hair-Again for $15 and pays a commission of 3 percent of sales to telephone operators who field the 1-800 phone calls from potential customers. Fixed marketing expenses for each quarter of the coming year include: 3 Internet banner ads Telephone operator time Travel $7,600 4,000 3,000Explanation / Answer
1. Marketing expense budget
2.
Marketing expense budget
Variable marketing expenses would not be affected as it is a fixed cost. Fixed marketing expense would increase by $22200. Total marketing expense will also increase by $22200.
Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year Fixed marketing expenses: Original (7600+4000+3000) $14600 $14600 $14600 $14600 $58400 Infomercials on television 10000 10000 25000 25000 70000 Variable expenses: Commission on sales 2250 6750 18000 15750 42750 Total marketing expenses $26850 $31350 $57600 $55350 $171150Related Questions
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