Answer:
$217,000
Explanation:
With regards to the above information, we can compute the forecasted salary expense next year by;
If salary expense is 15.5% of sales, then salary expense this year would be;
= 15.5% × $1,300,000
= $201,500
Salary expense next year would be
= 15.5% of forecasted sales next year
= 15.5% × $1,400,000
= $217,000
Forecasted salary expense next year would be $217,000 if all expenses maintain a constant percent of sales
