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Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 6% of sales Advertising expense 14% of sales Miscellaneous administrative
Digital Solutions Inc. uses flexible budgets that are based on the following data:
Sales commissions | 6% of sales |
Advertising expense | 14% of sales |
Miscellaneous administrative expense | $10,000 per month plus 3% of sales |
Office salaries expense | $55,000 per month |
Customer support expenses | $17,000 per month plus 30% of sales |
Research and development expense | $75,000 per month |
repare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $700,000, and $1,000,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers.
Digital Solutions Inc. | ||||||
Flexible Selling and Administrative Expenses Budget | ||||||
For the Month Ending October 31 | ||||||
Total sales | $400,000 | $700,000 | $1,000,000 | |||
Variable cost: | ||||||
$ | $ | $ | ||||
Total variable cost | $ | $ | $ | |||
Fixed cost: | ||||||
$ | $ | $ | ||||
Total fixed cost | $ | $ | $ | |||
Total selling and administrative expenses | $ | $ | $ |
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