As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of

Pronghorn Company for the month of October.

Fixed expenses

As a result of this budget report, Joe was called into the president's office and congratulated on his fine sales performance. He was

reprimanded, however, for allowing his costs to get out of control. Joe knew something was wrong with the performance report that

he had been given. However, he was not sure what to do$,$ and comes to you for advice.