Green Earth Landscaping Company provides monthly and weekly landscaping and maintenance services to residential customers in the tri-city area. Green Earth has no variable administrative expense. Fixed administrative expenses for June, July, and August include: Salaries $9,800 Insurance 2,200 Depreciation 3,700 Accounting services 500 Required:

1. Construct an administrative expense budget for Green Earth Landscaping Company for the three summer months. Show total amounts by month and in total for the three-month period. Green Earth Landscaping Company Administrative Expense Budget For the Summer Months June July August Total Salaries $ $ $ $ Insurance Depreciation Accounting services Total administrative expense $ $ $ $

2. What if Green Earth Landscaping Company's insurance rates increased at the beginning of July to $2,700 per month? How would that affect monthly administrative expense? Total monthly administrative cost would by $.