6. Variable selling and administration expenses include commissions and other administrative expenses. Commissions are budgeted at 5% of sales dollars for the quarter. Eighty percent of these commissions are paid in the quarter earned, while 20% are paid in the following quarter. Other variable administration costs are $2.00 per unit. These costs are paid for in the quarter incurred. Annual fixed selling and administration expenses are as follows: Sales salaries $ 152,000 Administration salaries 100,000 Travel 24,000 Insurance 3,400 Utilities 2,800 Depreciation 12,000 Other 2,800 TOTAL $ 297,000 Fixed selling and administration expenses are spread evenly across quarters for budgeting purposes. Applicable fixed expenses are paid for quarterly