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All else constant, what would Chester’s SG&A/Sales ratio be if the company had spent an additional $1,500,000 for Crimp’s promotional budget and $750,000 for Crimp’s sales budget? Select: 1Save Answer 10.7% 9.2% 12.8% 12.2%

Respuesta :

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Answer: 11.7%

Explanation:

The current Selling, General and Administrative Expenses are the Promotions, Sales, Admin and R&D costs.

If the company spent an additional $1,500,000 for promotion and $500,000 for sales the total would be;

= 1,500 + 500 + 2,824 + 5,200 + 6,000 + 1,404

= $17,678,000

The SG&A/Sales ratio is;

= 17,678,000/ 151,411,000

= 0.116755

= 11.7%

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Chester’s SG&A/Sales ratio be 11.7% in the case when the company had spent an additional $1,500,000 for Crimp’s promotional budget  is 11.7%.

Calculation of the  SG&A/Sales ratio :

First the cost is

= 1,500 + 500 + 2,824 + 5,200 + 6,000 + 1,404

= $17,678,000

Now

The SG&A/Sales ratio is;

= 17,678,000/ 151,411,000

= 0.116755

= 11.7%

hence, we can conclude that  Chester’s SG&A/Sales ratio be 11.7% in the case when the company had spent an additional $1,500,000 for Crimp’s promotional budget  is 11.7%.

Learn more about sales here: https://brainly.com/question/24417547

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