Bux Corporation produces and sells one product. In November it expects to sell 10,600 units of this product. The company's variable selling and administrative expense is $3.70 per unit sold and its fixed selling and administrative expense is $50,000 per month. The estimated selling and administrative expense for November is closest to:

A) $50,000
B) $89,220
C) $59,480
D) $39,220

Question

Brandon Fajardo · Accepted Answer

Final Answer : B, Explanation :  The estimated selling and administrative expense for November is calculated by adding the variable expenses to the fixed expenses. The variable expense is $3.70 per unit for 10,600 units, which equals $39,220. Adding this to the fixed expense of $50,000 gives a total of $89,220.

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