Flexible budget for a drug store The following cost behavior data pertain to the Cedar- town Drug Store. The owner of the store uses flexible budgets to plan activities and measure results. Several new stores have been built recently nearby and the owner is uncertain what the effect will be on sales.

REQUIRED Prepare a flexible budget for the Cedartown Drug Store using sales of $60,000, $80,000, and $100,000.

Transcribed Image Text:

Fixed Variable Cost Cost per Sales Dollar Advertising $8,000 Wages and commissions 22,000 $.06 Building lease cost... 7,200 .02 Supplies.... 1,200 .02 Equipment depreciation 600 ' Utilities 600 .03 Maintenance 3,000 .03 Product cost.. .40