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Agent Blaze uses flexible budgets that are based on the following data: Sales commissions 8% of sales Advertising expense 20% of sales Miscellaneous selling expense
Agent Blaze uses flexible budgets that are based on the following data:
Sales commissions | 8% of sales |
Advertising expense | 20% of sales |
Miscellaneous selling expense | $2,500 plus 2% of sales |
Office salaries expense | $17,000 per month |
Office supplies expense | 3% of sales |
Miscellaneous administrative expense | $1,750 per month plus 1% of sales |
Prepare a flexible selling and administrative expenses budget for January 2016, for sales volumes of $110,000, $140,000, and $165,000. (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 $110,000 $140,000 $165,000 Variable cost: Sales commissions 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 ar administrative expensesStep by Step Solution
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