Preparing a monthly flexible budget. The Van Doren Company has a gross profit of 45’ percent of net sales. After analyzing its operating expenses, the firm determined that its fixed monthly 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 $30,000, $40,000, and $50,000.

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Fixed Expenses (Monthly) Variable Expenses (Percent of Net Sales) Sales Salaries $3,000 2.0 Warehouse Salaries 1,200 -0- Office Salaries 2,600 -0- Payroll Taxes 1,380 0.4 Advertising Delivery Supplies Rent 600 -0- 1,200 1.0 100 0.5 3,000 -0- Utilities 450 -0- Repairs 100 -0- Property Taxes 150 -0- Miscellaneous 300 1.0