Selling expense budget TDY Corporation expects to sell 1,600 high-end portable com- puters during the coming budget year at $3,950 each. Based on past experience its sales representatives will average 300 miles of travel for each unit of sales. There are five representa- tives, all of whom use their own cars. They are compensated $.30 per mile, and earn a salary of $1,000 per month plus a commission of 5 percent of sales. They spend about $15 per unit of sales on phone calls, and charge the company an average of $70 per day for meals and lodging while traveling. Sales representatives typically travel 220 days per year. Clerical costs needed to support the selling function amount to $62,000 per year and other selling expenses are $7,000 per month.

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REQUIRED Prepare an annual selling expense budget for next year's sales of computers.