X-Tel budgets sales of $100,000 for April, $120,000 for May, and $75,000 for June. In addition, sales commissions are 10% of sales dollars and the company pays a sales manager a salary of $10,000 per month. Sales commissions and salaries are paid in the month incurred. Prepare a selling expense budget for April, May, and June.

                                   X-Tel budgets selling expense budget (Amounts in $)

Month                                      April                   May                June

Sales commission                 10,000              12,000             7,500      

Sales Manager's salaries      10,000              10,000            10,000

Total                                       20,000             22,000            17,500

Explanation:

The selling expense shows the forecast of sales related expenses. These include the manager's salaries and the sales commission. The sales commission is a percentage of projected. It may be computed as follows;

Sales commission for

April

= 10%* $100,000

= $10,000

May

= 10%* $120,000

= $12,000

June

= 10%* $75,000

= $7,500

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explanation: