Test markets do not yield infallible results. Sometimes test markets lead to the wrong decision

The following details have been extracted from the budget of a merchandising company

Rent Expense $8,400 per month Depreciation Expense $3,500 per month Insurance Expense $2,000 per month Miscellaneous Expense 2% of sales, paid as incurred Commissions Expense 8% of sales Salaries Expense $6,000 per month Dec Jan Feb March Sales $55,000 $60,000 $75,000 $90,000 Commissions and salaries expenses are paid 50% in the month to which they are incurred and the balance in the next month. Rent and miscellaneous expenses are paid as and when they occur. Insurance is prepaid at the beginning of the quarter. Calculate cash payments for the selling and administrative expenses for the first quarter of the next year. A) $21,100 B) $49,200 C) $70,300 D) $26,200

A(n) ________ is a linkage that results when a director from one company sits on the board of another company

A) interlocking directorate B) strategic alliance C) network D) keiretsu