Reference no: EM132105390

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.