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Selling and Administrative Expenses Budget Example

Explore an example of a selling and administrative expenses budget.

Selling & Administrative Expenses Budget

  • At Royal, the selling and administrative expenses budget is divided into variable and fixed components.
  • The variable selling and administrative expenses are $0.50 per unit sold.
  • Fixed selling and administrative expenses are $70,000 per month.
  • The fixed selling and administrative expenses include $10,000 in costs – primarily depreciation – that are not cash outflows of the current month.


Budget sales: April 20k, May 50k, June 30k, Q 100k. Variable S&A rate: April $0.50, May $0.50, June $0.50, Q $0.50. Variable expenses: April $10k, May $25k, June $15k, Q $50k. Fixed S&A expenses: April 70k, May 70k, June 70k, Q 210k. Total S&A expenses: April 80k, May 95k, June 85k, Q 260k. Less: Non-cash expenses: April 10k, May 10k, June 10k, Q 30k. Cash S&A expenses: April $70k, May $85k, June $75k, Q $230k

Over to you

Have you done a selling and administrative expenses budget in the past? Do you think it will be useful for you moving forward?

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