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Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 15% of sales Advertising expense 20% of sales Miscellaneous administrative

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

Sales commissions 15% of sales
Advertising expense 20% of sales
Miscellaneous administrative expense $9,000 per month plus 12% of sales
Office salaries expense $30,000 per month
Customer support expenses $14,000 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 $ $ $
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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