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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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