After Jacob because familiar with the flexible budget report, he began to analyze the numbers. Jacob feels that sales can be

increased if JT Outdoor Company would increase sales commissions to $33.00 per unit. This would allow them to reduce

advertising expense to $8.50 per unit. Jacob thinks that these changes will motivate the sales staff to sell at least 5,500 units. He is

allowed to try his plan in December and had the following results.

JT Outdoor Company Winter Sports Department Results For the Month Ended December 31, 2020 Sales in units 5,500 Variable expenses Sales commissions $175,100 Advertising expense 44,850 Travel expense 262,300 Demonstration models given out 110,400 Total variable 592,650 Fixed expenses Rent 8,200 Sales salaries 60.000 Office salaries 39.700 Depreciation - vans (sales staff) 2.900 Total fixed 110,800 Total expenses $703,450 Prepare a budget report based on flexible budget data. The new depreciation amount has been included in the budgeted fixed costs. (Round per unit answers to 2 decimal places, eg. 15.25) JT Outdoor Company Winter Sports Department Flexible Budget Report For the Month Ended December 31.2020 Per Unit Budget Actual Sales in Units 1 Variable Expenses Sales Commissions