Pearl, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $ 40 comma 000 in January, $ 50 comma 000 in February, and $ 60 comma 000 in March. Variable and fixed selling and administrative expenses are as follows: Variable Expenses: Power cost (30% of sales) Miscellaneous expenses: (5% of sales) Fixed Expenses: Salaries expense: $ 10 comma 000 per month Rent expense: $ 5 comma 000 per month Depreciation expense: $ 1 comma 200 per month Power cost/fixed portion: $ 800 per month Miscellaneous expenses/fixed portion: $ 1 comma 200 per month Calculate total budgeted selling and administrative expenses for the month of January. A. $ 32 comma 200 B. $ 39 comma 200 C. $ 35 comma 700 D. $ 14 comma 000 g

A. $32,200

Explanation:

The following details are are applicable to the month of January ;

Fixed expenses:

Rent = $5,000

Salary = $10,000

depreciation = $1,200

Fixed Miscellaneous = $1,200

Fixed power = $800

Total fixed expenses = $5,000 + $10,000 + $1,200 + $1,200 + $800 = $18,200

Forecasted January sale = $40,000

Variable expenses:

Power = 30% of sales = 0.3 × $40,000 = $12,000

Miscellaneous = 5% of sales = 0.05 × $40,000 = $2000

Total variable expenses = $12,000 + $2000 = $14,000

Therefore, total selling and administrative expenses for january is given by;

Selling expenses(total variable expenses) + administrative expenses( total fixed expenses)

= $18,200 + $14,000 = $32,200

d, conspicuous consumption is when you try to increase your wealth or social status (and in the case he's trying to create the perception of wealth considering he can't really afford it)

a) both were commissioned explorers