Bay Harbour Natural Skincare is a proud Canadian company that manufactures skincare products made of non -toxic , eco-friendly and cruelty - free materials . The mission of the company is to bring the luxury of natural skincarw to the everyday family beauty routine . Since 2005 , the company has been using the flexible budgets to control its selling and administrative expenses . In particular , for 2021 , the relevant range for the monthly sales is set from $500000 to $600,000 . The variable costs consist of sales commissions (6.0 % of sales ), promotions (5.2 % of sales ), distribution (9.0 of sales ) and online ads costs (3.5 % of sales ). The monthly fixed selling expenses consist of the salespersons $52,000 and rent of the showroom $ 11,050 . During the month of January 2021, the company incurred the following selling expenses : Distribution Online Ads Promotions Rent of showroom Salespersons wages Selling commissions $39,923 16,385 20,995 11,050 53,625 31,363 nstructions Given that the actual sales for January 2021 are $507,000, prepare a flexible budget performance report for selling expenses .