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Preparing a Selling and Administrative Expenses Budget

Fazel Company makes and sells paper products. In the coming year, Fazel expects total sales of $$20,000,000.$ There is a $4\%$ 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 $fill in the blank $1$

Fixed expenses:

Salaries $fill in the blank $2$

Utilities fill in the blank $3$

Office space fill in the blank $4$

Advertising fill in the blank $5$

Total fixed expenses fill in the blank $6$

Total selling and administrative expenses $fill in the blank $7$