Preparing a Selling and Administrative Expenses Budget Fazel Company makes and sells paper products. In the coming year, Fazel expects total sales of $19,800,000. The expenses of the sales and administrative offices include the following: Salaries $ 960,000 Utilities 365,000 Office space 230,000 Advertising 1,200,000 Required: Prepare a selling and administrative expenses budget for Fazel Company for the coming year. Fazel Company Selling and Administrative Expenses Budget For the Coming Year Variable selling expenses Fixed expenses: Salaries Utilities Office space Advertising
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.
![Preparing a Selling and Administrative Expenses Budget
Fazel Company makes and sells paper products. In the coming year, Fazel expects total sales of $19,800,000. There is a 4% commission on sales. In addition, fixed
expenses of the sales and administrative offices include the following:
Salaries
$ 960,000
Utilities
365,000
Office space
230,000
Advertising
1,200,000
Required:
Prepare a selling and administrative expenses budget for Fazel Company for the coming year.
Fazel Company
Selling and Administrative Expenses Budget
For the Coming Year
Variable selling expenses
Fixed expenses:
Salaries
Utilities
Office spacе
Advertising
Total fixed expenses
Total selling and administrative expenses](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe07787a5-7039-4de2-a538-09ce855c2651%2Fb022e5ab-3534-4dec-b6aa-02c65c279114%2F38zf03n_processed.png&w=3840&q=75)
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