Delivery and commission expenses vary proportionally with

Question

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

Total

$   162,000

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