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matthew gabon, the sales manager of Office Furniture Solutions, prepared the following budget for 201 salaries(fixed) $400,000 commissions(variable)
matthew gabon, the sales manager of Office Furniture Solutions, prepared the following budget for 201salaries(fixed) $400,000commissions(variable) 150,000advertising(fixed) 75,000charge for office space(fixed) 3,000office supplies & forms (variable) 2,000630,000after he submitted his budget, the president of Office Furniture Solutions reviewed it and recommended that advertising be increased to $100,000. further, she wanted Matthew to assume a sales level of $11,000,000. this level of sales is to be achieved without adding to the sales force.matthew's sales group occupies approximately 250 square feet of office space out of total administrative office of 20,000 square feet. the $3,000 space charge in matthew's budget is his share (allocated based on relative square feet) of the company's total cost of rent, utilities, and janitorial costs for the administrative office building.