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Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $165,100 to $205,600. Variable costs and their percentage
Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $165,100 to $205,600. Variable costs and their percentage relationship to sales are sales commissions 7%, advertising 6%, travel 4%, and delivery 2%. Fixed selling expenses will consist of sales salaries $34,800, depreciation on delivery equipment $6,700, and insurance on delivery equipment $1,600. Prepare a monthly selling expense flexible budget for each $13,500 increment of sales within the relevant range for the year ending December 31, 2020. (List variable costs before fixed costs.) Total Expenses Advertising $9,906i $10,716 $11,526 Travel \begin{tabular}{|l|l|} \hline 6,604 & i \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline 7,144 & i \\ \hline \end{tabular} 7,684 Delivery \begin{tabular}{|l|l|} \hline 3,302 & i \\ \hline \end{tabular} 3,572 3,8423,05169,04 Sales Commissions Depreciation 6,700 6,700 \( \begin{array}{r}\hline \frac{6,70}{\hline} \\ \hline 1,60 \\ \hline\end{array} \) \begin{tabular}{|ll|l|} \hline Total Variable Expenses v & & \\ Total Fixed Expenses & \end{tabular}
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