Question 3: The budgeted unit sales of O’Brien Vineyards for the upcoming fiscal year;
Budgeted Unit Sales:
July: 24,000 August: 28,000 September: 22,000 October: 20,000 The company’s variable selling and administrative expenses per unit are $3.75. Fixed selling and
administrative expenses included advertising expense of $8,000 per month, executive salaries of $40,000
per month, and depreciation of $12,000 per month. In addition, O’Brien Vineyards will make insurance
payments of $4,000 in August and October. Property taxes of $3,000 will be paid in the September and
Prepare the Selling and Administrative Budget: Budget Sales
Variable S&A Rate
Variable Expenses
Fixed Expenses
Total S&A Expenses
Less: (Non-Cash)
Cash S&A Expenses July
24000 August