Benjo, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $60,000 in January, $50,000 in February, and $40,000 in March.
Variable and fixed selling and administrative expenses are as follows:

Variable Expenses:
Power cost: (80% of sales)
Miscellaneous expenses: (8% of sales)
Fixed Expenses:
Salaries expense: $8000 per month
Rent expense: $5000 per month
Depreciation expense: $1400 per month
Power cost/fixed portion: $800 per month
Miscellaneous expenses/fixed portion: $1200 per month

Required:
Give the total budgeted selling and administrative expenses for the month of January.

Ithink it should be increased.

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This question seems like it should be quite hard although it reall just wants you to subtract.92-8.7=83.3

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