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Flexible Budget for Selling and Administrative Expenses for a Service Company

Daybreak Technologies Inc. uses flexible budgets that are based on the following data:

$\backslash$table$[[$Sales commissions,$5\%$ of sales$],[$Advertising expense,$19\%$ of sales$],[$Miscellaneous administrative expense,$$1,350$ per month plus $3\%$ of sales$],[$Office salaries expense,$$13,000$ per month$],[$Customer support expenses,$$1,900$ plus $4\%$ of sales$],[$Research and development expense,$$4,250$ per month$]]$

Prepare a flexible selling and adrrinistrative expenses budget for April for sales volumes of $$85,000,$$$105,000,$ and $$130,000.$

Daybreak Technologies Inc.

Flexible Selling and Administrative Expenses Budget

For the Month Ending April $30$

Total sales

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