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Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 15% of sales Advertising expense 18% of sales Miscellaneous administrative
Digital Solutions Inc. uses flexible budgets that are based on the following data:
Sales commissions | 15% of sales |
Advertising expense | 18% of sales |
Miscellaneous administrative expense | $8,500 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 October for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 5 as a model.)
Digital Solutions Inc. | |||
Flexible Selling and Administrative Expenses Budget | |||
For the Month Ending October 31 | |||
Total sales | $400,000 | $500,000 | $600,000 |
Variable cost: | |||
Sales commissions | $fill in the blank 2 | $fill in the blank 3 | $fill in the blank 4 |
Advertising expense | fill in the blank 6 | fill in the blank 7 | fill in the blank 8 |
Miscellaneous administrative expense | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 |
Customer support expenses | fill in the blank 14 | fill in the blank 15 | fill in the blank 16 |
Total variable cost | $fill in the blank 17 | $fill in the blank 18 | $fill in the blank 19 |
Fixed cost: | |||
Miscellaneous administrative expense | $fill in the blank 21 | $fill in the blank 22 | $fill in the blank 23 |
Office salaries expense | fill in the blank 25 | fill in the blank 26 | fill in the blank 27 |
Customer support expenses | fill in the blank 29 | fill in the blank 30 | fill in the blank 31 |
Research and development expense | fill in the blank 33 | fill in the blank 34 | fill in the blank 35 |
Total fixed cost | $fill in the blank 36 | $fill in the blank 37 | $fill in the blank 38 |
Total selling and administrative expenses | $fill in the blank 39 | $fill in the blank 40 | $fill in the blank 41 |
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