# 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% of sales; the sales manager's salary is \$80,000;...

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% of sales; the sales manager's salary is \$80,000; advertising expenses are \$75,000; shipping expenses total 1% of sales; and miscellaneous selling expenses are \$2,100 plus 1% of sales.

justaguide | College Teacher | (Level 2) Distinguished Educator

Posted on

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
• Shipping expenses: 0.01*1000000 = \$10000
• Miscellaneous selling expenses: \$2100 + 1% of revenue = \$2100 + \$10000 = \$12100

Adding up the selling expenses we get \$ 217,100.

pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted on

If you have entered all of the information properly, the total selling expenses for the month should be \$217,100.

According to the link below, the way to find total selling expenses is to find all of the expenses that are linked to the sale of the firm's products.  As the link says:

Selling expenses include any expense incurred in an attempt to sell the products. Expenses such as advertising, salaries of sales personnel, and sales commissions would be included.

Given this definition, you would need to add

• Sales commissions of \$40,000.  This is the product of 1,000,000 times .04 in commissions.
• The sales manager's salary of \$80,000.