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Cloud Productivity Inc. uses flexible budgets that are based on the following data: Sales commissions 15% of sales Advertising expense 18% of sales Miscellaneous administrative

Cloud Productivity Inc. uses flexible budgets that are based on the following data:

Sales commissions 15% of sales
Advertising expense 18% of sales
Miscellaneous administrative expense $5,000 per month plus 12% of sales
Office salaries expense $29,000 per month
Customer support expenses $12,000 per month plus 20% of sales
Research and development expense $31,000 per month

Prepare a flexible selling and administrative expenses budget for March for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 5 as a model.)

Total sales $400000 $500000 $600000
Variable cost:
Sales commissions
Advertising expense
Miscellaneous administrative expense
Customer support expenses
Total variable cost
Fixed cost:
Miscellaneous administrative expense
Office salaries expense
Customer support expenses
Research and development expense
Total fixed cost
Total selling and administrative expenses

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