Chapter $8$ Homework

Flexible Budget for Selling and Administrative Expenses for a Service Company

Digital Solutions Inc. uses flexible budgets that are based on the following data:

Sales commissions

Advertising expense

Miscellaneous administrative expense

Office salaries expense

Customer support expenses

Research and development expense

$8\%$ of sales

$13\%$ of sales

$$8,500$ per month plus $6\%$ of sales

$$45,000$ per month

$$23,000$ per month plus $28\%$ of sales

$$80,000$ per month