Administrative Expense Budget

Green Earth Landscaping Company provides monthly and weekly landscaping and maintenance services to residential customers in the tri-city area. Green Earth has no variable administrative expense. Fixed administrative expenses for June, July, and August include:

Salaries	$9,100
Insurance	2,150
Depreciation	3,900
Accounting services	500

Required:

1. Construct an administrative expense budget for Green Earth Landscaping Company for the three summer months. Show total amounts by month and in total for the three-month period.

Green Earth Landscaping Company
Administrative Expense Budget
For the Summer Months
	June	July	August	Total
Salaries	$	$	$	$
Insurance
Depreciation
Accounting services
Total administrative expense	$	$	$	$

2. What if Green Earth Landscaping Company's insurance rates increased at the beginning of July to $2,700 per month? How would that affect monthly administrative expense?

Total monthly administrative cost would increase by $.