Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expenses budget. For the first 6 months of 2020, the following data are available: 1) Sales: 20,000 units quarter 1; 22,000 units quarter 2. 2) Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%. 3) Fixed costs per quarter: sales salaries $10,000, office salaries $6,000, depreciation $4,200, Insurance $1,500, utilities $800, and repairs expense $600. 4) Unit selling price: $20. Prepare a selling and administrative expense budget by quarters for the first 6 months of 2020. (List variable expenses before fixed expenses)

7. problems and applications q7 congress and the president decide that the united states should reduce air pollution by reducing its use of gasoline. they impose a $0.50 tax on each gallon of gasoline sold. suppose they decided to impose the tax on consumers. in the following graph, shows the effect of a $0.50 tax on each gallon of gasoline sold imposed on consumers by shifting the demand or supply curve. demand supply 0 1 2 3 4 5 6 3.0 2.5 2.0 1.5 1.0 0.5 0 price of gasoline (dollars per gallon) quantity of gasoline (thousands of gallons) demand s 1 s 2 true or false: the price producers receive will be higher if the tax were imposed on consumers. true false if the demand for gasoline were more elastic, this tax would be effective in reducing the quantity of gasoline consumed. true or false: consumers of gasoline are by this tax. true false workers in the oil industry are by this tax.