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Exercise 10-5 Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $165,500 to $198,500. Variable costs and
Exercise 10-5 Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $165,500 to $198,500. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 6%, traveling 496, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,000, depreciation on delivery equipment $6,900, and insurance on delivery equipment $1,200 Prepare a monthly flexible budget for each $11,000 increment of sales within the relevant range for the year ending December 31, 2017. (List variable costs before fixed costs.) FALLON COMPANY Monthly Selling Expense Flexible Budget For the Year 2017 For the Y ear 201
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