Asked by hector batalla on Jun 07, 2024
Verified
If the company has budgeted to sell 17,000 Debs in March, then the average budgeted selling and administrative expenses per unit sold for March is closest to:
A) $12.50 per unit
B) $2.50 per unit
C) $10.00 per unit
D) $17.00 per unit
Selling
The process of persuading or influencing a customer to purchase a product or service.
Administrative Expenses
Costs related to the general operation of a business that are not directly linked to production or sales, such as salaries of office staff and utilities.
- Acquire knowledge on the components and arithmetic involved in the development of budgeted selling and administrative expenses.
Verified Answer
NL
Neftaly LopezJun 14, 2024
Final Answer :
A
Explanation : 
Budgeted selling and administrative expenses = $170,000 + ($2.50 per unit × 17,000 units)
= $170,000 + $42,500 = $212,500
Average selling and administrative expense per unit = $212,500 ÷ 17,000 units = $12.50 per unit
Budgeted selling and administrative expenses = $170,000 + ($2.50 per unit × 17,000 units)= $170,000 + $42,500 = $212,500
Average selling and administrative expense per unit = $212,500 ÷ 17,000 units = $12.50 per unit
Learning Objectives
- Acquire knowledge on the components and arithmetic involved in the development of budgeted selling and administrative expenses.