general selling expense

Expenses associated with the selling function that cannot be billed directly to the sales force.  Expenses for each Merica area are calculated as $37,500 + $4,000 x number of salespeople + $0.20 x number of units sold.  Expenses for N/P/S are calculated as Lc 225,000 + Lc 24,000 x number of salespeople + Lc 1.20 x number of units sold.  Two thirds of general selling expenses are paid during the current quarter and one third are paid the following quarter.