Use the following data for problems 7 - 9: Fairfield Company is preparing the operating budget for the first quarter of 2024. They forecast sales of $45,000 in January, $52,000 in February, and $67,000 in March. Variable and fixed expenses are as follows: Variable: Power cost (40% of Sales) Fixed: Miscellaneous expenses (5% of Sales) Salary expense: $12,000 per month Rent expense: $5,000 per month Depreciation expense: $1,000 per month Power cost/fixed portion: $800 per month Miscellaneous expenses/fixed portion: $1,300 per month Use the following grid for your calculations: SALES BUDGET Total Sales JANUARY $45,000 FEBRUARY $52,000 JANUARY Operating Expenses Budget Variable Operating Expenses: Power Cost (40% of sales) Misc. expenses (5% of sales) Fixed Operating Expenses: Salary expense Depreciation expense Rent expense Power Cost (fixed portion) Misc. expense (fixed portion) = Total Operating Expenses 7) How much is the total operating expense for January? 8) How much is the total operating expense for February? 9) How much is the total operating expense for March? FEBRUARY MARCH $67,000 MARCH

Use the following data for problems 7-9: Fairfield Company is preparing the operating budget for the first quarter of 2024 . They forecast sales of \$45,000 in January, \$52,000 in February, and \$67,000 in March. Variable and fixed expenses are as follows: Variable: Power cost ( 40% of Sales) Miscellaneous expenses ( 5% of Sales) Fixed: Salary expense: $12,000 per month Rent expense: $5,000 per month Depreciation expense: $1,000 per month Power cost/fixed portion: $800 per month Miscellaneous expenses/fixed portion: $1,300 per month 7) How much is the total operating expense for January? 8) How much is the total operating expense for February? 9) How much is the total operating expense for March