Question
Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $166,900 to $200,200. Variable costs and their percentage
Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $166,900 to $200,200. Variable costs and their percentage relationship to sales are sales commissions 8%, advertising 6%, travel 4%, and delivery 1%. Fixed selling expenses will consist of sales salaries $34,600, depreciation on delivery equipment $7,000, and insurance on delivery equipment $1,600. Prepare a monthly selling expense flexible budget for each $11,100 increment of sales within the relevant range for the year ending December 31, 2020.
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