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4 April, 00:13

Preparing a Selling and Administrative Expenses Budget Fazel Company makes and sells paper products. In the coming year, Fazel expects total sales of $19,730,000. There is a 3% commission on sales. In addition, fixed expenses of the sales and administrative offices include the following: Salaries $ 960,000 Utilities 365,000 Office space 230,000 Advertising 1,200,000 Required: Prepare a selling and administrative expenses budget for Fazel Company for the coming year. 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 $

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  1. 4 April, 01:51
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    Solution and Explanation:

    The following is the selling and administrative expense structure of the Fazel company for the year. According to the given information and the dа ta:

    The Variable selling expenses (19730000 * 3%) 591900

    The Fixed Expenses

    The Salaries expense 960000

    The Utilities expense 365000

    The Office space expense 230000

    The Advertising expense 1200000

    The Total Fixed expense 2755000

    The Total selling & admin Expense 3346900

    Note: the variable expense is calculated by multiplying the total sales given in the question with the percentage of the commission given
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