Yoda\'s Manufacturing Projected SG&A Expense Budget 2013 Quarter 1 2 3 4 Year Bu

Question

Yoda's Manufacturing Projected SG&A Expense Budget 2013 Quarter 1 2 3 4 Year Budgeted   Sales $10,000 $15,000 $15,000 $20,000 $60,000 Variable   Cost Sales Commissions ($3.50/unit) $35,000 $52,500 $52,500 $70,000 $210,000 Freight-out ($1.20/unit) $12,000 $18,000 $18,000 $24,000 $72,000 Total   variable cost $47,000 $70,500 $70,500 $94,000 $282,000 Fixed Cost Advertising $5,000 $5,000 $5,000 $5,000 $20,000 Sales Salaries $15,000 $15,000 $15,000 $15,000 $60,000 Office Salaries $7,500 $7,500 $7,500 $7,500 $30,000 Depreciation $1,000 $1,000 $1,000 $1,000 $4,000 Property Taxes and Insurance $1,500 $1,500 $1,500 $1,500 $6,000 Total fixed   cost $30,000 $30,000 $30,000 $30,000 $120,000 Total   SG&A $77,000 $100,500 $100,500 $124,000 $402,000 Additional   information for the Income Statement: 1 Interest expense of $12,000 is   expected to be paid in 2013. 2 Tax rate is 30% Yoda's Manufacturing Projected SG&A Expense Budget 2013 Quarter 1 2 3 4 Year Budgeted   Sales $10,000 $15,000 $15,000 $20,000 $60,000 Variable   Cost Sales Commissions ($3.50/unit) $35,000 $52,500 $52,500 $70,000 $210,000 Freight-out ($1.20/unit) $12,000 $18,000 $18,000 $24,000 $72,000 Total   variable cost $47,000 $70,500 $70,500 $94,000 $282,000 Fixed Cost Advertising $5,000 $5,000 $5,000 $5,000 $20,000 Sales Salaries $15,000 $15,000 $15,000 $15,000 $60,000 Office Salaries $7,500 $7,500 $7,500 $7,500 $30,000 Depreciation $1,000 $1,000 $1,000 $1,000 $4,000 Property Taxes and Insurance $1,500 $1,500 $1,500 $1,500 $6,000 Total fixed   cost $30,000 $30,000 $30,000 $30,000 $120,000 Total   SG&A $77,000 $100,500 $100,500 $124,000 $402,000 Additional   information for the Income Statement: 1 Interest expense of $12,000 is   expected to be paid in 2013. 2 Tax rate is 30%

Explanation / Answer

Quarter 1 2 3 4 Year Expected Unit Sales 10000 15000 15000 20000 60000 Unit Selling Price 125 125 125 125 125 Total Budgeted Sales $1,250,000 $1,875,000 $1,875,000 $2,500,000 $7,500,000 Variable Cost Sales Commissions ($3.50/unit) $35,000 $52,500 $52,500 $70,000 $210,000 Freight-out ($1.20/unit) $12,000 $18,000 $18,000 $24,000 $72,000 Total variable cost $47,000 $70,500 $70,500 $94,000 $282,000 Fixed Cost Advertising $5,000 $5,000 $5,000 $5,000 $20,000 Sales Salaries $15,000 $15,000 $15,000 $15,000 $60,000 Office Salaries $7,500 $7,500 $7,500 $7,500 $30,000 Depreciation $1,000 $1,000 $1,000 $1,000 $4,000 Property Taxes and Insurance $1,500 $1,500 $1,500 $1,500 $6,000 Total fixed cost $30,000 $30,000 $30,000 $30,000 $120,000 Total Cost $77,000 $100,500 $100,500 $124,000 $402,000 Earning Before interest & tax $1,173,000 $1,774,500 $1,774,500 $2,376,000 $7,098,000 Less: Interest expenses $      12,000.00 Profit Before tax $7,086,000.00 Less:Tax expenses $2,125,800.00 Net Income $4,960,200.00

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