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Exercise 10-5 (Video) Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $173,900 to $210,200. Variable costs
Exercise 10-5 (Video) Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $173,900 to $210,200. Variable costs and their percentage relationship to sales are sales commissions 7%, advertising 4% travel 4%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,500, depreciation on delivery equipment $7,300, and insurance on delivery equipment $2,000 Prepare a monthly selling expense flexible budget for each $12,100 increment of sales within the relevant range for the year ending December 31, 2020. (List varlable costs before fixed costs. Monthly Selling Expense Flexible Budget Sales 173900 210200 186000 98100 Variable Expenses Delivery Total Variable Expenses Fixed Expenses Sales Salaries Fixed Expenses Total Fixed Expenses Total Expenses
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