Ch. 23

Indigo Co.

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Indigo Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $204,000 to $240,000. Variable costs and their percentage relationship to sales are sales commissions 8%, advertising 6%, travel 5%, and delivery 4%. Fixed selling expenses will consist of sales salaries $42,000, depreciation on delivery equipment $8,400, and insurance on delivery equipment $1,200. INDIGO COMPANY Monthly Selling Expense Flexible Budget For the Year 2022 $ $ $ S s S eTextbook and Media Sove for Later SUPPORT