Light as a Feather Inc makes running shoes and they are anticipating the incurrence of the following operating expenses during the upcoming year: Cost Sales commission Salaries $4 per pair of shoes sold $520,000 $6.00 per pair of shoes sold 1.5% of sales revenue Shipping expenses Bad debt expense Depreciation on sales vehicles Advertising $26,000 $21,500 The company plans to sell 127,000 pairs of shoes at $100 per pair. What will Light as a Feather Inc budget for cash disbursements related to operating expenses?
Light as a Feather Inc makes running shoes and they are anticipating the incurrence of the following operating expenses during the upcoming year: Cost Sales commission Salaries $4 per pair of shoes sold $520,000 $6.00 per pair of shoes sold 1.5% of sales revenue Shipping expenses Bad debt expense Depreciation on sales vehicles Advertising $26,000 $21,500 The company plans to sell 127,000 pairs of shoes at $100 per pair. What will Light as a Feather Inc budget for cash disbursements related to operating expenses?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
T5.
Transcribed Image Text:Light as a Feather Inc makes running shoes and they are anticipating the incurrence of the following operating expenses during the upcoming year:
Cost
$4 per pair of shoes sold
$520,000
$6.00 per pair of shoes sold
1.5% of sales revenue
Sales commission
Salaries
Shipping expenses
Bad debt expense
Depreciation on sales vehicles
Advertising
$26,000
$21,500
The company plans to sell 127,000 pairs of shoes at $100 per pair. What will Light as a Feather Inc budget for cash disbursements related to operating expenses?
O A. $1,837,500
O B. $520,000
OC. $1,964,500
O D. $1,811,500
C
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