Answer:
Total cash disbursement= $41,920
Explanation:
Giving the following information:
Number of units= 2,200
Variable selling and administrative expense= $4.50 per unit.
Budgeted fixed selling and administrative expense= $35,720 per month (depreciation of $3,700 per month)
<u>We need to calculate the cash disbursements for selling and administrative.</u>
Depreciation is not a cash expense.
Cash disbursement Selling and Administrative:
Total variable cost= 4.5*2,200= 9,900
Total fixed cost= (35,720 - 3,700)= 32,020
Total cash disbursement= $41,920
