Snells is a retail department store. The following cost-volume relationships were used in developing a flexible budget for the company for the current year. Yearly Fixed Variable Expenses per Cost of merchandise sold Selling and promotion expense Building occupancy expense Buying expense Delivery expense Credit and collection expense Administrative expense Totals $ 210,000 186,000 150,000 111,000 Expenses Sales Dollar $ 0.600 0.082 0.022 0.041 0.008 72,000 0.002 531,000 $1,260,000 0.003 $ 0.758 Management expected to attain a sales level of $12 million during the current year. At the end of the year, the actual results achieved by the company were as follows. Net sales Cost of goods sold Selling and promotion expense $10,500,000 6,180,000 1,020,000 Building occupancy expense 420,000 4 Buying expense 594,000 Delivery expense 183,000 Credit and collection expense 90,000 Administrative expense 564,000