For February, sales revenue is $562,000, sales commissions are 4% of sales, the sales manager's salary is $85,800, advertising expenses are $81,200, shipping expenses total 4% of sale, and miscellaneous selling expenses are $2,200 plus 1/2 of 1% of sales. Total selling expenses for the month of February are

Question

For February, sales revenue is $562,000, sales commissions are 4% of sales, the sales manager's salary is $85,800, advertising expenses are $81,200, shipping expenses total 4% of sale, and miscellaneous selling expenses are $2,200 plus 1/2 of 1% of sales. Total selling expenses for the month of February are

a.$216,970
b.$191,680
c.$169,200
d.$214,160

Answer 1

The correct answer is d. $214,160.

To calculate total selling expenses, we need to add up all of the separate expenses listed in the problem: sales commissions, sales manager's salary, advertising expenses, shipping expenses, and miscellaneous selling expenses.

Sales commissions = 4% of sales revenue = 0.04 x $562,000 = $22,480
Sales manager's salary = $85,800
Advertising expenses = $81,200
Shipping expenses = 4% of sales revenue = 0.04 x $562,000 = $22,480
Miscellaneous selling expenses = $2,200 + 0.005 x $562,000 = $5,610

Total selling expenses = $22,480 + $85,800 + $81,200 + $22,480 + $5,610 = $214,160.

Answer 2

To calculate the total selling expenses for the month of February, we need to consider the following expenses:

1. Sales commissions: 4% of sales
2. Sales manager's salary: $85,800
3. Advertising expenses: $81,200
4. Shipping expenses: 4% of sales
5. Miscellaneous selling expenses: $2,200 plus 1/2 of 1% of sales

Let's calculate each expense step-by-step:

1. Sales commissions: 4% of $562,000
Sales commissions = 4/100 * $562,000
Sales commissions = $22,480

2. Shipping expenses: 4% of sales
Shipping expenses = 4/100 * $562,000
Shipping expenses = $22,480

3. Miscellaneous selling expenses: $2,200 plus 1/2 of 1% of sales
Miscellaneous selling expenses = $2,200 + (1/2/100) * $562,000
Miscellaneous selling expenses = $2,200 + $2,810
Miscellaneous selling expenses = $5,010

Now, let's add up all the expenses:

Sales manager's salary + Advertising expenses + Sales commissions + Shipping expenses + Miscellaneous selling expenses = Total selling expenses

$85,800 + $81,200 + $22,480 + $22,480 + $5,010 = Total selling expenses

Total selling expenses = $216,970

Therefore, the total selling expenses for the month of February are $216,970.

The correct answer is a.$216,970.