You are required to construct a selling-overhead budget from the following details:
|
Establishment expenses of the sales department |
30,000. |
|
|
Other expenses of the sales department |
12,000. |
|
|
Advertisement |
9,000. |
|
|
Salaries to counter-salesmen |
30,000. |
Commission to counter-salesmen at 2% on their sales.
commission to travelling salesmen at 5% on their sales and out-of-pocket expenses at 3% on their sales.
The following are the likely sales range for a year.
|
Sales as counter |
Sales by travelling salesmen |
|
Rs. 3,00,000 |
Rs. 30,000 |
|
Rs. 4,00,000 |
Rs. 40,000 |
|
Rs. 5,00,000 |
Rs. 50,000 |