Question

Green Earth Landscaping Company provides monthly and weekly landscaping and maintenance services to residential customers in the tri-city area. Green Earth has no variable administrative expense. Fixed administrative expenses for June, July, and August include:Salaries $9,100Insurance 2,150Depreciation 3,900Accounting services 500Required:1. Construct an administrative expense budget for Green Earth Landscaping Company for the three summer months. Show total amounts by month and in total for the three-month period.Green Earth Landscaping CompanyAdministrative Expense BudgetFor the Summer Months June July August TotalSalaries $ $ $ $Insurance Depreciation Accounting services Total administrative expense $ $ $ $2. What if Green Earth Landscaping Company's insurance rates increased at the beginning of July to $2,700 per month? How would that affect monthly administrative expense?Total monthly administrative cost would increase by $.

Answer 1

Answer:

The construction is presented below:

Explanation:

1. The construction is presented below:

                           Green Earth Landscaping Company

                            Administrative Expense Budget

                                 For the Summer Months

                            June         July         August Total

Salaries              $9100     $9,100      $9,100 $27,300

Insurance          $2,150    $2,150      $2,150 $6,450

Depreciation     $3,900   $3,900     $3,900 $11,700

Accounting services $500 $500  $500         $1,500

Total administrative expenses $15,650  $15,650  $15,650    $46,950

2.

The construction is presented below:

                           Green Earth Landscaping Company

                            Administrative Expense Budget

                                 For the Summer Months

                            June         July         August Total

Salaries              $9100     $9,100 $9,100 $27,300

Insurance          $2,700     $2,700 $2,700 $8,100

Depreciation      $3,900   $3,900 $3,900 $11,700

Accounting services $500 $500 $500 $1,500

Total administrative expenses $16,200 $16,200 $16,200 $48,600