Preparing 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		$