Selling and administrative expenses are known to be a mixed cost; however, there is a lot of uncertainty about the portion that is fixed. Previous years experience has provided the following information (rounded): Lowest level of sales: 70,000 units Total Operating Expenses: $769,800 Highest level of sales: 110,000 units Total Operating Expenses: $1,009,800 The annual amount of Depreciation on office furniture and equipment is only $21,000and this amount is already included in the fixed portion of the selling and administration expenses. Not included in the above expenses is bad debt expense. Payments for selling and administrative expenses occur in the month in which they are incurred

Prepare a selling and administrative expense budget