Problem 7 Revised Budget Review the following SG&A budget that was prepared at the beginning of the current year. The economy appears to be slowing, and sales are now expected to run only 75% of plan. How much can now be expected to result for total SG&A? The only fixed cost that can be reduced relates to the advertising campaign. What are the possible impacts of attempting to save money by cutting a portion of the advertising budget? Selling. General, and Administrative Budget For the Year Ending December 31, 20X7 Estimated units sold 17.500 X Per unit variable SORA XS 5.50 Total variable SGA S481.250 Fixed SGRA Salaries S 467.500 Ome 112.000 Advertising 292.500 Other 39.250 Total fixed SG&A S 911.250 Total budgeted SIA $ 1.392.500 WORKSHEET 7 The following revised budget should reflect only 75% of the sales volume included in the original plan) units: Selling, General, and Administrative Budget For the Year Ending December 31, 20X7 Estimated units sold X Per unit variable SG&A Total variable SG&A Fixed SG&A Salaries Office Advertising Other Total fixed SG&A Total budgeted SG&A 11 C