Question

The following budget information relates to the Coca-Cola Company. For the

      year of 2019, the following data are developed:

1. Sales: 60,000 units; unit selling price: $55

2. Variable costs per dollar of sales:

      Sales commissions                       5%

      Delivery expense                        1%

      Utilities                               4%

3. Fixed costs per year:

      Office salaries                    $36,000

      Rent                                20,000

      Depreciation                         5,000

      Insurance                            4,000

      Interest                             1,000

Instructions

Prepare a selling and administrative expense budget for the year.

Answer 1

Particulars	Amount ($)	Amount ($)
Variable cost:		330,000
Sales commissions 5%(TS)	165,000
Delivery expenses 1%(TS)	33,000
Utilities 4%(TS)	132,000
Fixed cost:		66,000
Office salaries	36,000
Rent	20,000
Depreciation	5,000
Insurance	4,000
Interest	1,000
Total Selling & Adminstrative expenses		396,000

Selling units : 60,000 per year

Selling price : $55.00

Total sales(TS) $ 33,00,000