Question

Prepare the Operating Expense Budget for January.

Jan. sales units = 8,000

Jan. units to produce = 8,300

Operating expenses are budgeted to be $1.00 per unit sold

Fixed operating expenses are $1,000 per month.

Answer 1

Operating expenses include fixed as well as variable expenses

Operating Expense Budget
Month - January
Units to be sold	8,000
Operating Expense per unit sold	$                   1.00
Total variable operating Expenses	$          8,000.00
Total Fixed Operating Expenses	$          1,000.00
Budgeted Operating Expense for January	$          9,000.00