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Karma Company has prepared its operating budget for the first quarter of 20x9. The company forecasts sales of $50,000 in February, $60,000 in March, and $70,000 in April. Variable and fixed expenses are as follows: Variable: Utilities (electricity): 40 % of sales Misc. expenses: 5 % of sales Fixed: Salary expense $ 8,000 per month Rent expense $ 5,000 per month Depreciation expense $ 1,200 per month Utilities expense (fixed part) $ 800 per month Misc. Expense (fixed part) $ 1,000 per month What are the total selling and administrative expenses for the month of February

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Cricetus

Answer:

The correct solution is "38,500".

Explanation:

The given values are:

Sales in February,

= $50,000

Sales in March,

= $60,000

Sales in April,

= $70,000

Now,

The total selling and administrative expenses for the month of February will be:

=  [tex]Variable \ costs + Fixed \ cos ts[/tex]

On substituting the values, we get

=  [tex]50,000\times (40 \ percent+5 \ percent) + (8,00 0+5,000+1,200+800+1,000)[/tex]

=  [tex]20000+2500+8000+5000+1200+800+1000[/tex]

=  [tex]38,500[/tex]

Selling, general and administrative costs are the costs incurred by a firm to market, sell and deliver its products and services, as well as run day-to-day operations.

The correct solution is "38,500".  

Given Information:-

Sales in February= $50,000

Sales in March= $60,000

Sales in April = $70,000  

The total selling and administrative expenses for the month of February will be:

=Variable Costs + Fixed Costs

=50,000*(40%+ 5%)+(8,000+5,000+1,200+800+1,000)

=20,000+2500+8,000+5,000+1,200+800+1,000

=$38,500

To know more about selling and administrative expenses, refer to the link:

https://brainly.com/question/13937441

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