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Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $167,400 to $201,300. Variable costs and their percentage
Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $167,400 to $201,300. Variable costs and their percentage relationship to sales are sales commissions 8%, advertising 4%, traveling 4%, and delivery 1%. Fixed selling expenses will consist of sales salaries $34,900, depreciation on delivery equipment $7,400, and insurance on delivery equipment $1,500. Prepare a monthly flexible budget for each $11,300 increment of sales within the relevant range for the year ending December 31, 2017
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