You have been recruited by a former classmate, Susanna Wu, to join the finance team of a company that she founded recently. The company produces a unique product line of hypoallergenic cosmetics and relies for its success on an aggressive marketing program The company is in a start-up phase and therefore has no significant history of expenses and revenues upon which to rely for budgeting and planning purposes. Given the restriction on available funds (most of the available capital has been used for new. product development and to recrult a management team), the control of costs, including marketing costs, is thought by the management team to be essential for the short-term viability of the company You have held a number of intensive discussions with Susanna and John Thompson, director of marketing for the firm. They have asked you to prepare an estimated budget for marketing expenses for a month of operations You are provided with the following data, which represent average actual monthly costs over the past three months Cost Amount Sales commissions $120,000 Sales statt salaries 40,000 Telephone and mailing 38,000 Rental-office building Gas (utilities) 12,000 Delivery charges 70,000 Depreciation office furniture 8,000 Marketing consultants 25,000 25,000 Your discussions with John and Susanna indicate the following assumptions and anticipated changes regarding monthly marketing expenses for the coming year: Sales volume, because of aggressive marketing, should increase by 10% To meet competitive pressures, sales prices are expected to decrease by 5% Sales commissions are based on a percentage of sales revenue. Sales staff salaries, because of a new hire, will increase by 10%, regardless of sales volume . Because of recent industrywide factors, rates for telephone and mailing costs, as well as delivery charges are expected to increase by 6%. However, both of these categories of costs are variable with sales volume. Rent on the office building is based on a 2-year lease, with 18 months remaining on the original lease. . Gineitiitures are larre innlenendent of channes in calec nima Hawon her firstwie dicine in sinni thate