The Year 1 selling expense budget for Karin Corporation is as follows:
| Budgeted sales |
$2,500,000 |
| Selling costs: |
|
| |
Delivery expenses |
$ 25,000 |
| |
Commission expenses |
75,000 |
| |
Advertising expenses |
20,000 |
| |
Office expenses |
12,000 |
| |
Miscellaneous expenses |
30,000 |
Delivery and commission expenses vary proportionally with budgeted sales in dollars. Advertising and office expenses are fixed. Miscellaneous expenses include $10,000 of fixed costs. The rest varies with budgeted sales in dollars. The Year 2 budgeted sales is $3,400,000.
What will be the value for commission expenses in the Year 2 selling expense budget?
Select one:
A. $102,000B. $ 24,000C. $ 48,000D. $122,000