Employee wage costs per month are made up of 2 parts: a salary of $5,000 plus sales commissions equal to 10% of the current months sales. This is a mixed cost with both a fixed ($5,000) and a variable portion. The company pays half this amount in the current month and half early the following month. Other monthly expenses: Rent expenses fixed cost $9,000 (paid on first of month) Amortization, including computer fixed costs $2,250 Insurance expense fixed costs $600 (from prepaid insurance) Miscellaneous expenses variable costs 9% of sales Miscellaneous expenses are paid 70% in the current month and 30% in the following month. Remember to enter numeric amounts without a $ or , (a comma) If the answer is $20,000.00, then enter the number as 20000 Remember to round to 2 decimal places. For numbers such as 1.456, round up to 1.46 and for numbers such as 1.452, round down to 1.45 Required: Complete the Operating Expenses Budget and fill in the following numbers. Remember - this is accrual accounting based!

Total operating expenses for January are $:

Total operating expenses for February are $: