PREPARING A SELLING AND ADMINISTRATIVE EXPENSES BUDGET Andrews Company makes and sells industrial solvents. In the coming year, Andrews expects to sell $34,500,000 of solvents. There is a 2 percent commission on sales. In addition, fixed expenses of the sales and administrative offices include the following:

Salaries $1,860,000 Utilities 456,000 Office space 230,000 Advertising 3,200,000 Required:

Prepare a selling and administrative expenses budget for Andrews Company for the coming year.

Cornerstone Exercise