After Hank because familiar with the flexible budget report, he began to analyze the numbers. Hank feels that sales can be increased if Jennings Outdoor Company would increase sales commissions to $30.00 per unit. This would allow them to reduce advertising expense to $8.00 per unit. Hank thinks that these changes will motivate the sales staff to sell at least 5,400 units. He is allowed to try his plan in December and had the following results. Jennings Outdoor Company Winter Sports Department Results For the Month Ended December 31, 2020 Sales in units 5,400 Variable expenses Sales commissions $155,600 Advertising expense 41,400 Travel expense 246,400 Demonstration models given out 108,300 Total variable 551,700 Fixed expenses Rent 8,200 Sales salaries 60,500 Office salaries 40,000 Depreciation-vans (sales staff) 2,900 Total foxed 111.600 Total expenses $663,300 Sales In Units Varlable Expenses Sales Commissions Advertising Expense- Travel Expense Per Unit Budget 30 STA 5400 162000 43200 47 253800 Free Demonstration Models 24 129600 Total Expenses Fixed Expenses Rent Sales Salaries Office Salaries Depreciation-Auto (Sales Staff) Total Fixed Total Expenses 109 588600 8200 60500 40000 22400 111100 699700 S Actu 5400 162000 Actual 5400 155600 43200 41400 253800 246400 69 nor Unfavorable 6400 Favorable 41400 Favorable 7400 Favorable 129600 108300 21300 Favorable 588600 551700 36900 Favorable 8200 8200 Nelther Favorable nor Unfavorable 60500 60500 Nelther Favorable nor Unfavorable v 40000 40000 Nelther Favorable nor Unfavorable v 2400 2900 500 Unfavorable 111100 111600 500 Unfavorable 699700 663300 36400 Favorable A