 the prior year months by 3% so we know that we're looking for if we look in the answer we're looking for June so we have May here and then we have June so we need to think about okay well what's gonna happen to June then based on this is that's where we want to go I'm gonna format paint this and go here and we know that the unit sales are gonna increase by 3% a couple ways we can calculate that we're gonna say that unit sales are 400 so for May units sales we have 400 and it's gonna increase by 3% so we could say okay well the increase is gonna be 3% I'm gonna put 0.03 and I'm gonna go back on that sale we're gonna go to the home tab alignment and just remember if I add decimals 3% is 0.03 if we move this if we move the decimal over or we can make it a percent 3% and then if we multiply that out we're gonna say all right well the increase then is 4,000 times 3% it's gonna increase by 12 so the increase is gonna be by 12 so this is the increase I'll say increase percent and this is actually the actual increase in dollars and that's gonna be the 12 so note that we might do that a bit more quickly by saying all right well if it's 400 and it's gonna increase by 3% instead of putting 3% we might just put 100% plus 3% is 1.03 so note we can do this a lot in one calculation this is worth noting by saying 1.03 103 percent of the original number means that it's gonna go to 412 you know rather than taking this 412 and saying what's the new sales are gonna be 400 plus 12 we can do that with one calculation by saying 400 times 1.03 103 percent and that'll give us that 412 so if I did that over over here again what we're doing is we're saying I'm taking this 400 times 1.03 103 percent 1.03 that gives us the the 412 times the 700 unit price so so we don't really need to calculate May but if we wanted to we can say okay May is 400 units times 700 per unit enter that comes out to 280 sales and then June is gonna go up to 214 412 units times 700 per unit and that gives us the 288 for now what we're looking for this is the sales and what we're looking for is the the selling expenses so they they're telling us that the selling expenses is 3% of sales we have commission commission rate is going to be 3% so once again that's point or 2% sorry it's 2% 0.02 so I'm gonna go back on there on that point oh so I'm gonna go to the home tab we're gonna go to the numbers group and again I could increase the decimals 0.02 is the same as if I say the percent sign 2% and that means that the commission will be the sales of 288 4 times 2% times 0.02 in the calculator and that'll give us the commission of this 5768 we also pay a salary so we have a salary a sales salary to the sales manager of 3000 therefore the total sales then would be the selling expense would be the commission 5768 plus the salary that we pay them and that will give us the 8768 for the selling expenses so note that the problem the main issue with this type of problem is to basically format the the information put it down in a format that works obviously an Excel it's nice because you can move things around if you don't have Excel then you need to get used to how to format different types of problems so you can do it efficiently by hand it would be the same type of thing graph like this but you want to be able to efficiently do that by hand alright next one here once again I'm gonna try to start off by reading that last line first to see if we can get some information on what needs to be done before we read through the entire thing so the last line begins right here with budgeted purchases of product a for the year would be so we need to find out what we're what the budgeted purchases of a will be so keep that in mind as we read through the entire thing here starting from the top we have the sales budget for corp shows 20,200 units of product a and 20,200 units of product b are going to be sold for prices of $10 and 20 cents and $12 and 20 cents respectively the desired ending inventory of product a is 30% higher than its beginning inventory