Question
ABC Companys budgeted sales for June, July, and August are 14,400, 18,400, and 16,400 units respectively. The following cost behavior patterns are budgeted for ABC
ABC Companys budgeted sales for June, July, and August are 14,400, 18,400, and 16,400 units respectively. The following cost behavior patterns are budgeted for ABC Companys operating expenses each month: Fixed costs: salaries, $3,200; rent, $6,200; depreciation, $3,600; advertising, $4,400 Mixed costs: utilities, $4,200 + $0.70 per unit Variable costs per unit sold: sales commissions, $3.20; marketing promotions, $2.20; supplies, $0.80; bad debt expense, $0.55 Required: Prepare ABC Companys operating expense budget for June, July, and August. Note: Enter all values as positive value. June July August Variable operating expenses: Sales commissions Marketing promotions Supplies Bad debt expense Utilities Total variable expense $0 $0 Fixed operating expenses: Salaries Rent Depreciation Advertising Utilities Total fixed expense $0 $0 Budgeted operating expense $0 $0
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