2023 Exercise E 11 6 The budgeted unit sales of Haerve Company for the upcoming fiscal year are provided below | Assignments Online
2023 Exercise E 11 6 The budgeted unit sales of Haerve Company for the upcoming fiscal year are provided below | Assignments Online
Assignments Online 2023 Business Finance
Exercise
E 11.6
The budgeted unit sales of Haerve Company for the upcoming fiscal year are provided below:
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Budgeted unit sales 12,000 14,000 11,000 10,000
The company’s variable selling and administrative expenses per unit are £2.75. Fixed selling and administrative expenses include advertising expenses of £12,000 per quarter, executive salaries of £40,000 per quarter, and depreciation of £16,000. In addition, the company will make insurance payment of £6,000 in the 2nd quarter and £6,000 and the 4th quarter. Finally, property taxes of £6,000 will be paid in the 3rd quarter.
Required:
Prepare the company’s selling and administrative expense budget for the upcoming fiscal year.
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