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Matthew Gabon, the sales manager of Office Furniture Solutions, prepared the following budget for 2008:Sales DepartmentBudgeted Cost, 2008(Assuming Sales of $12,000,000)$500,000$180,000$100,000$2,000$2,400$784,4000After he submitted his budget, the president of Office Furniture Solutions reviewed it and recommended that advertsing be increased to $120,000. Further, she wanted Matthew to assume a sales level of $13,000,000. This level of sales is to be achieved without adding to the sales force.Matthew sales group occupies approximately 250 square feet of office space out of total administrative office space of 20,000 square feet. The $2,000 space charge in Matthews’s budget is his share(allocated based on relative square feet) of the company’s total cost of rent, utilities, and janitorial cost for the administrative office building.Required pepare a revised budget consistent witht eh president’s recommendation.
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