Budgets: Budgets are prepared to estimate the revenue, costs, receipts and payments for the business. There are several types of budgets prepared for a manufacturing concern. Few major types of budgets prepared by each manufacturing concert are as follows: Sales budget Cash Collection budget Production budget Raw material purchase budget Expenses Budgets Cash disbursement budget Selling and Administrative Expenses Budget: The Selling and Administrative Expenses Budget is the of expenses budgets. Selling and Administrative Expenses includes variable fixed portion. The budget is prepared for both types of expenses and in totality. To prepare: The Selling and Administrative Expenses Budget for the upcoming fiscal year Solution: The Selling and Administrative Expenses Budget for the upcoming fiscal year is as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Budgeted Unit Sales (A) 15,000 16,000 14,000 13,000 $ 58,000 Variable Selling and Administrative Expenses per unit (B) $ 2.50 $ 2.50 $ 2.50 $ 2.50 Total Variable Selling and Administrative Expenses (C) = A*B = $ 37,500 $ 40,000 $ 35,000 $ 32,500 $145,000 Fixed Selling and Administrative Expenses: Advertising Expenses $ 8,000 $ 8,000 $ 8,000 $ 8,000 Executive's Salaries $ 35,000 $ 35,000 $ 35,000 $ 35,000 Depreciation $ 20,000 $ 20,000 $ 20,000 $ 20,000 Insurance $ 5,000 $ - $ 5,000 $ - Property Taxes $ - $ 8,000 $ - $ - Total Fixed Selling and Administrative Expenses (D) $ 68,000 $ 71,000 $ 68,000 $ 63,000 $270,000 Total Budgeted Selling and Administrative Expenses (C+D) $105,500 $111,000 $103,000 $ 95,500 $415,000

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A traveling production of Fame Broadway performs each year. The average show sells 1,500 tickets at $60 per ticket. There are 120 shows each year. The show has a cast of 70, each earning an average of $350 per show. The cast is paid only after each show. The other variable expense is program printing costs of $7 per guest. Annual fixed expenses total $1,500,000. Requirements: Compute revenue and variable expenses for each show.