Terrible Two\'s Inc. combines its operating expenses for budget purposes in a se

ID: 2541515 • Letter: T

Question

Terrible Two's Inc. combines its operating expenses for budget purposes in a selling and

administrative expenses budget. For the last six months of 2017, the following data are

available:

1. Sales: 31,500 units in Quarter 3; 51,500 units in Quarter 4

2. Variable costs per dollar of sales; sales commissions 2.40%; delivery expenses 3.45%;

and advertising 4.55%

3. Fixed costs per quarter: sales salaries $16,000; office salaries $3,050; depreciation

$4,350; insurance $2,500; utilities $400, and repairs $250

4. Unit selling price; $24.25

Could you help me prepare a selling and administrative expenses budget by quarter for the last six months of 2017?

sales amounts are basis for many other amounts, calculation of sales amounts:

*Hope above explanation helps, please comment if further explanation is required. Your rating is appreciated*

Particulars Quarter 1 Quarter 2 Sales $ 31,500 $ 51,500 Selling price per unit $ 24.25 $ 24.25 Sales in dollars $ 763,875 $ 1,248,875

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