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QUESTION 20 Zhang Industries sells a product for $700. Unit sales for May were 400 and each month's sales are expected to exceed the prior month's results by 3%. Zhang pays a sales manager a monthly salary of $3,000 and a commission of 2% of sales. Compute the projected selling expense to be reported on the selling expense budget for the manager for month ended June 30. $8,600. $11,652. $8,652. $5,768. $8,768.

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Answer:

$8,768

Explanation:

Sales for June will be = $700 x 400 + $700 x 400 x 0.03 =

                                    =280000 + 8400 = $288400

Projected selling expense = $3000 + $288400 * 0.02 = $3000 + $5768

                                                                                          = $8768

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