Selling & Administrative Expenses Variable selling and administrative expenses is $7.37 per sweater sold. Fixed selling and administrative expense is $23,900 per month including $10,750 in depreciation that is not a current cash outflow. All cash disbursements for selling and administrative costs are paid in the month incurred. ...................... Factory Update & Cash Flow Lexie's borrowed $300,000 on Oct. 1, 2020, to prepare for a factory update. The full $300,000 was repaid on Nov. 30, 2020, but Lexie's paid two interest payments of $4,500 for the borrowings. The factory update cost $400,500 which was paid on Oct. 31, 2020. This addition to depreciable PP&E caused the fixed manufacturing overhead to raise to $30,750 per month in November with $15,750 being non-cash. Selling & Administrative Expenses Variable S&A Fixed S&A Noncash Fixed S&A included in above) per unit sold per month per month Factory Update & Cash Flow Factory Update (PP&E) paid on October 31, 2020 Principle Borrowed on October 1, 2020 Principle Repaid on November 30, 2020 Interest Payment on Borrowings in October & November per month paid in following month