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Business, 07.04.2020 20:01, kelebsessoms89
Karma Company has prepared its operating budget for the first quarter of 20x9. The company forecasts sales of $50,000 in February, $60,000 in March, and $70,000 in April. Variable and fixed expenses are as follows:Variable:
Power cost (40% of Sales)
Miscellaneous expenses (5% of Sales)
Fixed:
Salary expense: $8,000 per month
Rent expense: $5,000 per month
Depreciation expense: $1,200 per month
Power cost/fixed portion: $800 per month
Miscellaneous expenses/fixed portion: $1,000 per month
How much is the total operating expense for January?
A) $38,500 B) $47,500 C) $41,700 D) $43,000
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Answers: 3
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Karma Company has prepared its operating budget for the first quarter of 20x9. The company forecasts...
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