What will be the value for commission expenses

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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?

Select one:

A. $102,000B. $ 24,000C. $ 48,000D. $122,000

Reference no: EM131758299

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