Preparing a Selling and Administrative Expenses Budget

Fazel Company makes and sells paper products. In the coming year, Fazel expects total sales of $19,730,000. There is a 3% commission on sales. In addition, fixed expenses of the sales and administrative offices include the following:

Salaries	$ 960,000
Utilities	365,000
Office space	230,000
Advertising	1,200,000

Required:

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

Fazel 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	$