8.11

Digital Solutions Inc. uses flexible budgets that are based on the following data:

Sales commissions	7% of sales
Advertising expense	15% of sales
Miscellaneous administrative expense	$11,000 per month plus 6% of sales
Office salaries expense	$51,000 per month
Customer support expenses	$20,000 per month plus 31% of sales
Research and development expense	$74,000 per month

Prepare a flexible selling and administrative expenses budget for October for sales volumes of $500,000, $700,000, and $1,100,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers.

Digital Solutions Inc.
Flexible Selling and Administrative Expenses Budget
For the Month Ending October 31
Total sales	$500,000		$700,000		$1,100,000
Variable cost:
Sales commissions
Advertising expense
Miscellaneous administrative expense
Customer support expenses
Total variable cost
Fixed cost:
Miscellaneous administrative expense
Office salaries expense
Customer support expenses
Research and development expense
Total fixed cost
Total selling and administrative expenses