Preparing a Selling and Administrative Expenses Budget Fazel Company makes and s

Question

Preparing a Selling and Administrative Expenses Budget Fazel Company makes and sells paper products. In the coming year, Fazel expects total sales of $19,000,000. There is a 7% commission on sales. In addition, fixed expenses of the sales and administrative offices include the following: Salaries Utilities Office space Advertising Required Prepare a selling and administrative expenses budget for Fazel Company for the coming year. $960,000 365,000 230,000 1,200,000 Fazel Company Selling and Administrative Expenses Budget For the Coming Year Variable selling expenses Fixed expenses: Salaries Utilities Office space Advertising Total fixed expenses Total selling and administrative expenses

Explanation / Answer

Solution :

Fazel Company Selling and administrative expenses budget For the coming year Particulars Amount Variable selling expenses ($19,000,000 *7 %) $1,330,000.00 Fixed Expenses: Salaries $960,000.00 Utilities $365,000.00 Office space $230,000.00 Advertising $1,200,000.00 Total fixed expenses $2,755,000.00 Total selling and administrative expenses $4,085,000.00

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