Managerial Accounting Matthew Gabon, the sales manager of office furniture solutions has Original Budget of Assuming sales of 10,0000 Salaries (fixed): $400,000 Commissions (variable): $150,000 Advertising (fixed): $75,000 Charge for Office Space (fixed): $3,000 Office Supplies & Forms (variable): $2,000 Total: $630,000 Changes Recommended by President Increase advertising to $100,000 Increase Sales assumption level is to be set at $11,000,000 The level of sales should be achieved without adding to the sales force. Matthews sales group occupies 250 square feet of office space out of administrative office space of 20,000square feet. The $3000 space charge in Matthews budget is his share (allocated based on square foot) of the company total cost of rent, utilities, and janitorial supplies for the administrative office building.

Required: Prepare a revised budget consistent with president recommendations