(Questions 7-8 20 Points Each-Show work to get partial credit 7) Bronx, Inc. has

Question

(Questions 7-8 20 Points Each-Show work to get partial credit 7) Bronx, Inc. has prepared the operating budget for the first quarter of the year. Tha ced sales of $75,000 in January, s85,000 in February, and $95,000 in Mareh. a follows: (20 Points) Variable Expenses: Variable and fixed expenses ate an Power cost (30% of sales) Miscellaneous expenses: (20% of sales) Fixed Expenses: Salaries expense: $10,000 per month Rent expense: $3,000 per month Depreciation expense: $1,000 per month Power cost/fixed portion: $1000 per month Miscellaneous expenses/fixed portion: $1,200 per month Using the information above, calculate the amount of selling and administrative expense

Explanation / Answer

Selling and administrative budget Jan Feb march Quarter Expected sale 75,000 85,000 95,000 255,000 Variable selling expense power costs (30% of sales) 22500 25500 28500 76500 miscellaneous expense (20% of sales) 15000 17000 19000 51000 total variable sellinge expense 37500 42500 47500 127500 fixed selling expense Salaries expense 10,000 10,000 10,000 30,000 Rent expense 3,000 3,000 3,000 9,000 Depreciation expense 1,000 1,000 1,000 3,000 power cost 1,000 1,000 1,000 3,000 miscellaneous expense 1,200 1,200 1,200 3,600 Total fixed selling expense 16,200 16,200 16,200 48,600 total selling & administrative expense 53,700 58,700 63,700 176,100

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