Four questions use this data: ELT Corporation, which makes only one product, Yes

Question

Four questions use this data: ELT Corporation, which makes only one product, Yester, has the following information available for the coming year. ELT expects sales to be 27,000 units at $32 per unit. The current inventory of Yester is 3,500 units. ELT wants an ending inventory of 4,200 units. Each unit of Yester takes two units af component Component K is estimated to cost $9 per unit. Current inventory of K is 3,900 units. ELT wants 5,800 units of K on hand at the end of the next year If ELT pays its sales staff commission of 5% of sales. How much wil be recorded on the marketng budget for sales com miss ons for the next peon $864,000 $86,400 $43,200 $27,000

Explanation / Answer

Budgeted sales = No. of budgeted sales unit x sales price per unit = 27,000 x $ 32 = $ 864,000

Budgeted sales commission = Budgeted sales x 5 % = $ 864,000 x 0.05 = $ 43,200

Hence option “$ 43,200” is correct answer.

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