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in this video we are going to talk about the operating expenses budget sometimes called the selling and administrative expenses budget so Ive seen some tax call it operating some text call it selling an administrative its the same budget so depending on what your textbook calls it this could be either/or so again were working with the the paper airplanes international problem if you want to download that problem go to you can click the link in the description for this video and theyll take you to where you can download the entire problem alright so when were dealing with selling an administrative expenses or operating expenses theres a variable component okay so youre gonna have total variable expenses and then youre gonna have fixed expenses now your variable expenses are typically based off of sales so if you look at the problem the problem says sales commissions and shipping costs are three percent of sales so thats not sales in units thats gonna be sales in dollars so wha