Ch. 14 part 3

Danzi, Inc., has budgeted sales for the month of July and estimated cost behavior patterns for a number of its expenses listed below. From this information prepare an operating expense budget for the month of July.

Budgeted sales revenue	$230,000
Budgeted sales	4,600 units
Budgeted production	4,900 units
(Partial listing of expense items):
Sales commission	5% of sales
Sales salaries	$6,800
Production supervisor salaries	7,600
Administrative salaries	9,400
Administrative expense	8,000
Marketing promotions	$0.75 per unit
Depreciation on plant equipment	$5,000
Depreciation on office equipment	2,500
Raw materials used	$7.50 per unit
Advertising	$4,200
Delivery expense	$0.50 per unit
Bad debt expense	1% of sales
Property taxes on plant	$5,000
Property taxes on office	3,000