Question

Scotch, Inc. has prepared the operating budget for the first quarter of the year. The company forecasts sales of $50,000 in January, $60,000 in February, and $70,000 in March. Variable and fixed expenses are as follows: Variable Expenses: - Power cost (20% of sales) - Miscellaneous expenses (5% of sales) Fixed Expenses: - Salaries expense: $8,000 per month - Rent expense: $5,000 per month - Depreciation expense: $1,400 per month - Power cost/fixed portion: $500 per month - Miscellaneous expenses/fixed portion: $1,000 per month Using the information above, calculate the amount of selling and administrative expenses for the month of February.

          Scotch, Inc. has prepared the operating budget for the first quarter of the year. The company forecasts sales of $50,000 in January, $60,000 in February, and $70,000 in March. Variable and fixed expenses are as follows: 

Variable Expenses: 
- Power cost (20% of sales) 
- Miscellaneous expenses (5% of sales) 

Fixed Expenses: 
- Salaries expense: $8,000 per month 
- Rent expense: $5,000 per month 
- Depreciation expense: $1,400 per month 
- Power cost/fixed portion: $500 per month 
- Miscellaneous expenses/fixed portion: $1,000 per month 

Using the information above, calculate the amount of selling and administrative expenses for the month of February.

Added by Jordi D.

Question

Please give Ace some feedback