You are required to construct a selling-overhead budget from the following details:
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Establishment expenses of the sales department
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30,000.
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Other expenses of the sales department
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12,000.
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9,000.
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Salaries to counter-salesmen
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30,000.
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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.
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Sales as counter
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Sales by travelling salesmen
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Rs. 3,00,000
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Rs. 30,000
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Rs. 4,00,000
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Rs. 40,000
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Rs. 5,00,000
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Rs. 50,000
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