Delivery and commission expenses

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Reference no: EM13922076

The Year 1 selling expense budget for Karin Corporation is as follows:

Budgeted sales

$2,500,000

Selling costs:

 

 

 

Delivery expenses

$ 25,000

 

Commission expenses

75,000

 

Advertising expenses

20,000

 

Office expenses

12,000

 

Miscellaneous expenses

30,000

 

Total

$ 162,000


Delivery and commission expenses vary proportionally with budgeted sales in dollars. Advertising and office expenses are fixed. Miscellaneous expenses include $10,000 of fixed costs. The rest varies with budgeted sales in dollars. The Year 2 budgeted sales is $3,400,000.  

What will be the value for commission expenses in the Year 2 selling expense budget?

 

A.

$122,000

 

B.

$ 24,000

 

C.

$102,000

 

D.

$ 48,000

Reference no: EM13922076

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