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Agent Blaze uses flexible budgets that are based on the following data: Sales commissions Advertising expense 7% of sales 18% of sales $2,250 plus 4%
Agent Blaze uses flexible budgets that are based on the following data: Sales commissions Advertising expense 7% of sales 18% of sales $2,250 plus 4% of sales $15,000 per month Miscellaneous selling expense Office salaries expense Office supplies expense 5% of sales Miscellaneous administrative expense $1,600 per month plus 3% of sales Prepare a flexible selling and administrative expenses budget for January 2016, for sales volumes of $100,000, $125,000, and $150,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers. Agent Blaze Flexible Selling and Administrative Expenses Budget For the Month Ending January 31, 2016 Total sales $100,000 $125,000 Variable cost: Sales commissions $150,000 Advertising expense Miscellaneous selling expense Office supplies expense Miscellaneous administrative expense Total variable cost Fixed cost: Miscellaneous selling expense Office salaries expense Miscellaneous administrative expense Total fixed cost Total selling and administrative expenses
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