Selling and Administrative Budget and Budgeted Income Statement. (The previous problem must be completed before working this problem.) Hershel's Chocolate produces chocolate bars. Management estimates all selling and administrative costs are fixed. Quarterly selling and administrative cost estimates for the coming year follow.

Salaries	$170,000
Rent	$65,000
Advertising	$120,000
Depreciation	$75,000
Other	$36,000

Required:

1. 1. Use the information presented previously and prepare selling and administrative budget. R
   2. Use the information from the previous problem and from requirement a of this problem and prepare budgeted income statement.
   3. How will management use the information presented in the budgeted income statement?