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ed Combined Metal Industries is a leading and innovative recycler and distributor of metal products. Since 2005, the company has been using the flexible budgets
ed Combined Metal Industries is a leading and innovative recycler and distributor of metal products. Since 2005, the company has been using the flexible budgets to control its selling and administrative expenses. In particular, for 2019, the relevant range for the monthly sales is set from $750,000 to $800,000. The variable costs consist of sales commissions (6% of sales), promotions (4% of sales), distribution (8% of sales) and printing costs (2% of sales). The monthly fixed selling expenses consist of the salespersons wages $80,000 and rent of the showroom $17,000. During the month of October 2019, the company incurred the following selling expenses: $48,250 Selling commissions Promotions Distribution Printing costs Salespersons wages Rent of showroom 32,300 61,420 14,800 82.500 17,000 ed Combined Metal Industries is a leading and innovative recycler and distributor of metal products. Since 2005, the company has been using the flexible budgets to control its selling and administrative expenses. In particular, for 2019, the relevant range for the monthly sales is set from $750,000 to $800,000. The variable costs consist of sales commissions (6% of sales), promotions (4% of sales), distribution (8% of sales) and printing costs (2% of sales). The monthly fixed selling expenses consist of the salespersons wages $80,000 and rent of the showroom $17,000. During the month of October 2019, the company incurred the following selling expenses: $48,250 Selling commissions Promotions Distribution Printing costs Salespersons wages Rent of showroom 32,300 61,420 14,800 82.500 17,000
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