EX 21-2

Flexible budget for selling and administrative expenses for a service company

Cloud Productivity Inc. uses flexible budgets that are based on the following data:

Sales commissions ......................................... 12% of sales

Advertising expense........................................ 16% of sales

Miscellaneous administrative expense ....................... $5,000 per month plus 12% of sales Office salaries expense ..................................... $25,000 per month

Customer support expenses................................. $11,000 per month plus 20% of sales Research and development expense......................... $35,000 per month

Prepare a flexible selling and administrative expenses budget for March for sales volumes of $300,000, $400,000, and $500,000. The budget schedule should present the variable expenses in the upper part of the schedule and the fixed expenses in the lower part, and the sum of both.