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22-6 Please help me solve this asap. Thank you in advance. Flexible Budget for Selling and Administrative Expenses for a Service Company Digital Solutions Inc.
22-6 Please help me solve this asap. Thank you in advance.
Flexible Budget for Selling and Administrative Expenses for a Service Company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 15% of sales Advertising expense 20% of sales Miscellaneous administrative expense $6,000 per month plus 12% of sales Office salaries expense $30,000 per month Customer support expenses $12,000 per month plus 20% of sales $32,000 per month Research and development expense Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 5 as a model.) Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 Total sales $400,000 $500,000 Variable cost: $600,000 Total variable cost Fixed cost: Quild 2011) Total fixed cost Total selling and administrative expensesStep by Step Solution
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