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Problem - Preparing an Operating Budget
Ulster Company expects to sell 50,000 units of its product in the coming year. Each unit sells for $45. Sales brochures and supplies for the year are expected to cost $9,000. Two sales representatives cover the southeast region. Each representative's base salary is $20,000, and each earn a sales commission of 5 percent of the selling price of the u nits he or she sells. The representative supplies their own transportation; they are reimbursed for travel at a rate of $0.60 per mile. The company estimates that the sales representatives will drive a total of 75,000 miles next year.
From the information provided, calculate Ulster Company's budgeted selling expenses for the coming year.
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