Elwood Company makes and sells plastic trash bags. In the coming year, Elwood expects total sales of $18,620,000. There is a 4% commission on sales. In addition, fixed expenses of the sales and administrative offices include the following:

Salaries........................$ 796,000

Utilities..........................173,000

Office space....................312,000

Advertising..................1,100,000

Required:

Prepare a selling and administrative expenses budget for Elwood Company for the coming year.