The Year 1 selling expense budget for Karin Corporation is as follows:
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Budgeted sales
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$2,500,000
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Selling costs:
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Delivery expenses
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$ 25,000
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|
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Commission expenses
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75,000
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Advertising expenses
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20,000
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|
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Office expenses
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12,000
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Miscellaneous expenses
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30,000
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Delivery and commission expenses vary proportionally with budgeted sales in dollars. Advertising and office expenses are fixed. Miscellaneous expenses include $10,000 of fixed costs. The rest varies with budgeted sales in dollars. The Year 2 budgeted sales is $3,400,000.
What will be the value for commission expenses in the Year 2 selling expense budget?
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A.
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$122,000
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B.
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$ 24,000
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C.
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$102,000
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D.
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$ 48,000
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