MM Co. predicts sales of $45,000 for May. MM Co. pays a sales manager a monthly salary of $4,700 plus a commission of 6% of sales dollars. MM’s production manager recently found a way to reduce the amount of packaging MM uses. As a result, MM’s product will receive better placement on store shelves and thus May sales are predicted to increase by 9%. In addition, MM’s shipping costs are predicted to decrease from 4% of sales to 2% of sales.
Compute (1) budgeted sales and (2) budgeted selling expenses for May assuming MM switches to this more sustainable packaging.
1) Budgeted Sales= 49050
2) Budgeted Selling Expenses= ?
Answers: 3
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