Stringline Ltd uses flexible budgets in order to control selling expenses.

Monthly sales range from $200 000 to $300 000. Budgeted fixed monthly expenses for the Sales Department are $63 000 for salaries of sales staff, $5000 for depreciation of equipment, and $12 000 for insurance. Variable expenses expressed as a percentage of sales are training expenses for sales staff, 6%; advertising, 15%; sales commissions, 4%; and sundry selling expenses, 3%.

Required Prepare a flexible budget using increments of $50 000 over the expected range of sales.