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Fallon Company uses flexible budgets to controlits selling expenses. Monthly sales are expected to range from $170,000 to $200.000. Variable costs and their percentage relationship
Fallon Company uses flexible budgets to controlits selling expenses. Monthly sales are expected to range from $170,000 to $200.000. Variable costs and their percentage relationship to sales are sales commissions 6% advertining 4%, travel 3% and delivery 220 . Fixed selling sepenses will consist of sales salaries $35,000, depreciation on delivery equipment $7,000, and insurance on delivery equipment $1.000 Prepare a monthly selling expense flexible bodget for each 510.000 increment of sales within the relevant range for the year ending December 31, 2020. (List wariable costs before fived costs)
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