Question - Preparing a Selling and Administrative Expenses Budget
Fazel Company makes and sells paper products. In the coming year, Fazel expects total sales of $19,730,000. 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.