2 ABC Company uses budgets to control its selling expenses. Monthly sales are expected to range from $180,000 to $200,000. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 4%, travelling 3%, and delivery 1%. Fixed selling expenses consist of sales salaries $35,000, depreciation on delivery equipment $7,000, and insurance on delivery equipment $1,000. The actual selling expenses incurred by ABC Company are as follows: Variable Expenses Sales Commissions $12.00 Advertising $7.50 Travel $3.30 Delivery $2.00 *Assume the sales were $195,000 Instructions: a. Prepare static budget for ABC Company for each 20,000 increment of sales within the relevant range b. Prepare flexible budget for ABC Company c. Explain the performance evaluation based on two budgets above d. Explain why flexible budget is more informative than the static budget