Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

After he submitted his budget, the president of Office Furniture Solutions reviewed it and recommended that advertising be increased to $100,000. Further, she wanted Matthew

After he submitted his budget, the president of Office Furniture Solutions reviewed it and recommended that advertising be increased to $100,000. Further, she wanted Matthew to assume a sales level of $11,000,000. This level of sales is to be achieved without adding to the sales force. Matthew's sales group occupies approximately 250 square feet of office space out of total administrative office space of 20,000 square feet. The $3,000 space charge in Matthew's budget is his share (allocated based on relative square feet) of the company's total cost of rent, utilities, and janitorial costs for the administrative office building. Required Prepare a revised budget consistent with the president's recommendation.

Sales Department Budget Costs, Assuming Sales 10,000,000
Salaries (fixed) 400,000.
Comissions (variable) 150,000.
Advertising (fixed) 75,000.
Charge for office space (fixed) 3,000.
Office supplies (variable) 2,000.
total

630,000.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Core Concepts Of Accounting

Authors: Leslie Breitner, Robert Anthony

11th Edition

0133125947, 9780133125948

More Books

Students also viewed these Accounting questions