Question: Royal Phillips Electronics of the Netherlands reports sales of €23,200 million for a recent year. Assume that the company expects sales growth of 3 percent for the next year. Also assume that selling expenses are typically 20 percent of sales, while general and administrative expenses are 4 percent of sales.
Required: 1. Compute budgeted sales for the next year.
2. Assume budgeted sales for next year is €24,000 million, and then compute budgeted selling expenses and budgeted general and administrative expenses for the next year. Round amounts to one decimal.