Question - Lauren Inc. has prepared the operating budget for the first quarter of 2015. They forecast sales of $100,000 in October, $120,000 in November, and $140,000 in December. Variable and fixed expenses are as follows:
Variable: Power cost (50% of Sales)
Miscellaneous expenses: (5% of Sales)
Fixed: Salary expense: $10,000 per month
Rent expense: $10,000 per month
Depreciation expense: $1,200 per month
Power cost/fixed portion: $800 per month
Miscellaneous expenses/fixed portion: $2,000 per month
Calculate total selling and administrative expenses for the month of October.