Green Earth Landscaping Company provides monthly and weekly landscaping and maintenance services to residential customers in the tri-city area. Green Earth has no variable administrative expense. Fixed administrative expenses for June, July, and August include: Salaries $9,300 Insurance 2,000 Depreciation 3,500 Accounting services 900 Required:
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Green Earth Landscaping Company provides monthly and weekly landscaping and maintenance services to residential customers in the tri-city area. Green Earth has no variable administrative expense. Fixed administrative expenses for June, July, and August include:
| Salaries | $9,300 |
| Insurance | 2,000 |
| 3,500 | |
| Accounting services | 900 |
Required:
Question Content Area
1. Construct an administrative expense budget for Green Earth Landscaping Company for the three summer months. Show total amounts by month and in total for the three-month period.
| June | July | August | Total | |
|---|---|---|---|---|
| Salaries | $fill in the blank f20bfe024036faf_1 | $fill in the blank f20bfe024036faf_2 | $fill in the blank f20bfe024036faf_3 | $fill in the blank f20bfe024036faf_4 |
| Insurance | fill in the blank f20bfe024036faf_5 | fill in the blank f20bfe024036faf_6 | fill in the blank f20bfe024036faf_7 | fill in the blank f20bfe024036faf_8 |
| Depreciation | fill in the blank f20bfe024036faf_9 | fill in the blank f20bfe024036faf_10 | fill in the blank f20bfe024036faf_11 | fill in the blank f20bfe024036faf_12 |
| Accounting services | fill in the blank f20bfe024036faf_13 | fill in the blank f20bfe024036faf_14 | fill in the blank f20bfe024036faf_15 | fill in the blank f20bfe024036faf_16 |
| Total administrative expense | $fill in the blank f20bfe024036faf_17 | $fill in the blank f20bfe024036faf_18 | $fill in the blank f20bfe024036faf_19 | $fill in the blank f20bfe024036faf_20 |
Question Content Area
2. What if Green Earth Landscaping Company's insurance rates increased at the beginning of July to $3,000 per month? How would that affect monthly administrative expense?
Total monthly administrative cost would
by $fill in the blank ca8128f8bff7057_2.
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