? ? Company\'s budgeted sales for June, July, and August a e 14.20 expenses each

Question

? ? Company's budgeted sales for June, July, and August a e 14.20 expenses each month: 18.20 and 16,200 respectively. The follow ng cost behav o a e ns are budgeted for ABC Company's operating Fixed costs: salaries, $3.100; rent, $8,100; depreciation, $3,500, advertising, $4,300 Mixed costs: utilities, $4,100 $0.60 per unit ts per unit sold: sales commissions, $3.10; marketing promotions, $2.10; supplies, s0.75, bad debt expense, S0.50 Required: Prepare ABC Company's operating expense budget for june, July, and August. JuneJy Aug Variable operating expenses Sales commissions Supplies Bad debts expense Utilities Total variable expense Fixed operating expenses: Salaries Rent Advertising Utilities Total fixed expense Budgeted operating expense

Explanation / Answer

June July August No. of Units 14200 18200 16200 June July August Variable operating expenses Sales commissions (No. of Units x 3.10) 44020 56420 50220 Marketing promotions (No of Units x 2.1) 29820 38220 34020 Supplies (No. of Units x .75) 10650 13650 12150 Bad debts expenses (No of units x .5 ) 7100 9100 8100 Utilities (No of Units x .6) 8520 10920 9720 Total variable expenses 100110 128310 114210 Fixed operating expenses Salaries 3100 3100 3100 Rent 6100 6100 6100 Depreciation 3500 3500 3500 Advertising 4300 4300 4300 Utilities 4100 4100 4100 Total fixed expenses 21100 21100 21100 Budgeted operating expenses 121210 149410 135310

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