Preparing a Selling and Administrative Expenses Budget Fazel Company makes and sells paper products. In the coming year, Fazel expects total sales of $20,000,000. There is a 3% 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 $fill in the blank 1 Fixed expenses: Salaries $fill in the blank 2 Utilities fill in the blank 3 Office space fill in the blank 4 Advertising fill in the blank 5 Total fixed expenses fill in the blank 6 Total selling and administrative expenses $fill in the blank 7
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 $20,000,000. There is a 3% 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 | $fill in the blank 1 | |
| Fixed expenses: | ||
| Salaries | $fill in the blank 2 | |
| Utilities | fill in the blank 3 | |
| Office space | fill in the blank 4 | |
| Advertising | fill in the blank 5 | |
| Total fixed expenses | fill in the blank 6 | |
| Total selling and administrative expenses | $fill in the blank 7 |
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