1. Explain a Selling and Administrative Expenses Budget

Elwood Company makes and sells plastic trash bags. In the coming year, Elwood expects total sales of $18,620,000. There is a 4% commission on sales. In addition, fixed expenses of the sales and administrative offices include the following:

Salaries $ 796,000 Utilities 173,000 Office space 312,000 Advertising 1,100,000

Required:

Prepare a selling and administrative expenses budget for Elwood Company for the coming year.

Elwood Company Selling and Administrative Expenses Budget For the Coming Year

Variable selling expenses

$Fixed expenses:

Salaries$

Utilities

Office space

Advertising

Total fixed expenses

Total selling and administrative expenses$