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expenses for reimbursement. (In 2005, the meal and entertainment expenses were limited to $50 per week per sales representative based upon a 52 week year.) The following information is available regarding the actual selling costs incurred for 2005: No change 2006 ADMINISTRATIVE BUDGET INFORMATION The administrative department consists of the president and an office staff of eight who handle the secretarial, purchasing, and accounting duties. (Total of nine people.) The following information is available regarding the 2005 actual costs: It is felt that the level of the office and administrative staff will be adequate for the coming year. It is expected that the following changes will occur in 2006: 2006 INCOME TAX INFORMATION The current federal and state income tax rates total 40%. All taxes for the year will be paid by the end of the year which means that there will be no accrued taxes on December 31, 2006. 2006 ACCOUNTS RECEIVABLE INFORMATION