Preparing a monthly flexible budget. Nilson Distributors has a gross profit of 30 percent of net sales. After analyzing its operating expenses, the firm determined that its fixed expenses and its variable expenses (expressed as a percent of net sales) are as shown below.

Instructions Prepare a monthly flexible budget for the company at sales levels of $120,000, $150,000, and $180,000.

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Sales Salaries Fixed Expenses (Monthly) $12,000 Variable Expenses (Percent of Net Sales) 1.5 Delivery Salaries 5,200 20 Other Salaries 4,800 -0- Payroll Taxes 6,000 4 Advertising Supplies Rent 1.200 -0- 300 .1 3,600 -0- Utilities 700 -0- Repairs 200 -0- Property Taxes 300 -0- Auto and Truck Miscellaneous 600 .5 820 1.2