Warshaw Company is preparing the June Budget.
The June budget includes the following data:
Sales $100,000
Purchases of Merchandise $95,000
Depreciation $2224
Insurance $11954
Payroll expenses $5446 a month plus 2% of sales
Administrative office expenses incurred to order purchases are budgeted at 6% ofpurchases of merchandise only
Purchase of equipment $2406
Research and Development 10% of sales
What is total operating expense for June?
(hint: not everything listed is an operating expense)