BUSN 5200: Webster and Company has budgeted sales commissions of $500,000 for 2021, based on sales estimates of $3,000,000 for the same year. After the first quarter however, they realize that sales are exceeding expectations. Sales are now expected to reach $4,000,000 for 2021. By how much will Webster and Company adjust their budget beginning in the 2nd quarter for sales commissions? Webster and Company uses a static budgeting process.

Posted: December 19th, 2022

Webster and Company has budgeted sales commissions of $500,000 for 2021, based on sales estimates of $3,000,000 for the same year.  After the first quarter however, they realize that sales are exceeding expectations.  Sales are now expected to reach $4,000,000 for 2021.  By how much will Webster and Company adjust their budget beginning in the 2nd quarter for sales commissions?  Webster and Company uses a static budgeting process.

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