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Bentonville Inc. bases its marketing and administrative expense budget on budgeted unit sales. The sales budget shows 4,900 units are planned to be sold in December. The variable marketing and administrative expense is $4.80 per unit. The budgeted fixed marketing and administrative expense is $93,100 per month, which includes depreciation of $8,420 per month. The remainder of the fixed marketing and administrative expense represents current cash flows. The cash disbursements for marketing and administrative expenses on the December marketing and administrative expense budget should be:

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Answer:

$108,200

Explanation:

                          Marketing and Administrative Budget

Budgeted unit sales                                                                4,900

Variable marketing and administrative expense per unit  *$4.80  

Variable marketing and administrative expense                  $23,520

Fixed marketing and administrative expense                       $93,100

Total marketing and administrative expense                        $116,620

Less: Depreciation                                                                   $8,420  

Cash disbursements for marketing                                      $108,200

and administrative expenses

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