Sunday, 6 July 2008

What would the company's total selling expenses be for the month of Marchin the example below? Sales revenue is $1,000,000; sales commissions are 4%...

The sales
revenue is given to be $1,000,000.To calculate the total selling expenses we need to calculate
each of the components that make up the selling expenses as given in the problem and add them
up.

We have the selling expenses given as:


  • Sales commissions are at 4% of revenue: 0.04*1000000 = $40000

  • Sales manager's salary: $80000

  • Advertising expenses: $75000
  • Shipping
    expenses: 0.01*1000000 = $10000

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