Pittman company is a small but growing manufacturer of telecommunications equipment. the company has no sales force of its own; rather, it relies on independent sales agents to market its products. these agents are paid a sales commission of 15% for all items sold. barbara cheney, pittman¿½s controller, just prepared the company¿½s budgeted income statement for next year as follows: pittman company budgeted income statement for the year ended december 31 sales $ 23,500,000 manufacturing expenses: variable$ 10,575,000 fixed overhead3,290,00013,865,000 gross margin 9,635,000 selling and administrative expenses: commissions to agents3,525,000 fixed marketing expenses164,500* fixed administrative expenses2,100,0005,789,500 net operating income 3,845,500 fixed interest expenses 822,500 income before income taxes 3,023,000 income taxes (30%) 906,900 net income $ 2,116,100
What is the total budgeted sales for Pittman Company for the year ended December 31?
a) $23,500,000
b) $13,865,000
c) $9,635,000
d) $3,845,500