The following budget information relates to the x company

Question

Problem - The following budget information relates to the X Company. For the year of 2017, the following data are developed:

1. Sales: 60,000 units; unit selling price:                  $50

2. Variable costs per dollar of sales:

Sales commissions                                                 5%

Delivery expense                                                   1%

Utilities                                                                  4%

3. Fixed costs per year:

Office salaries                                                        $36,000

Rent                                                                      20,000

Depreciation                                                          5,000

Insurance                                                              3,000

Interest                                                                 1,000

Instructions - Prepare a selling and administrative expense budget for the year.