A retailer has the following budgeted sales:

May $3 000 000

June $2 500 000

July $2 200 000

August $2 800 000

The store employees earn fixed monthly salaries totalling $120 000 and 10% commissions of

current monthly sales. Disbursements are made semi- monthly, that is half to be paid a month

after salaries and commissions are earned. Other expenses are: Rent $30 000 paid 1st day of each

month miscellaneous expenses 6% of sales insurance $3 000 per month, related to a one year

policy that way paid on 2nd of January.

Depreciation $19 000 per month.

Required

a) Prepare an operating expenses budget for the months of June, July and August

b) Prepare a disbursement budget on the operating expenses for the same period in a) above.