Windathon, Inc. expects sales volume totaling $500,000 for June. Data for the month follows: Sales commissions 4% of sales Sales manager's salary $30,000 per month Advertising expense $25,000 per month Shipping expense. 1% of sales Miscellaneous selling expenses $2,100 per month plus 3/4% of sales How much is Windathon’s selling expense budget for June? $85,850. $83,750. $57,100. $30,850.

$85,850

Explanation:

Prepare Windathon, Inc. selling expense budget for June as follows :

Sales commissions ($500,000 × 4%)                                         $20,000

Sales manager's salary                                                                $30,000

Advertising expense                                                                    $25,000

Shipping expense ($500,000 × 1%)                                            $  5,000

Miscellaneous selling expenses ( $2,100 + $500,000×3/4%)     $5,850

Total                                                                                               $85,850

Therefore Windathon’s selling expense budget for June is $85,850.

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