Response to the following problem:
Andrews Company makes and sells industrial solvents. In the coming year, Andrews expects to sell $34,500,000 of solvents. There is a 2 percent commission on sales. In addition, fixed expenses of the sales and administrative offices include the following:
Salaries ..........$1,860,000
Utilities ..............456,000
Office space ........230,000
Advertising .......3,200,000
Required:
Prepare a selling and administrative expenses budget for Andrews Company for the coming year.