Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $169,900 to $211,000. Variable costs and their percentage relationship to sales are sales commissions 7%, advertising 4%, traveling 4%, and delivery 1%. Fixed selling expenses will consist of sales salaries $34,700, depreciation on delivery equipment $7,500, and insurance on delivery equipment $1,900.

Prepare a monthly flexible budget for each $13,700 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

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