Bigelow Company budgets payroll at $ per month plus a percentage of monthly
sales. The June operating expense budget includes total payroll of $ with
budgeted sales of $ Sales for July are budgeted at $ while purchases
of inventory for July are budgeted at $ Depreciation and insurance for July are
estimated at $ and $ respectively. Office and administrative expenses related
to purchasing inventory are budgeted at of purchases for the month. The purchase
of $ in equipment and $ in furniture is expected in July.
A What is the July payroll at Bigelow Company should be budgeted at
B What are the total operating expenses at Bigelow Company budgeted for July
are?
C If the Bigelow Company percentage of monthly sales used in budgeting payroll
increases by what would the total payroll budgeted for July be
