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Flexible budget for selling and administrative expenses for a service company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales
Flexible budget for selling and administrative expenses for a service company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 9% of sales 9 Advertising expense 13% of sales Miscellaneous administrative $8,500 per month plus 4% of expense sales Office salaries expense $50,000 per month $19,000 per month plus 31% % Customer support expenses of sales Research and development $72,000 per month $ expense This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. . X1 Open spreadsheet Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $800,000, and $1,000,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers. Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 Total sales $400,000 $800,000 $1,000,000 $$ Variable cost: Sales commissions Advertising expense Miscellaneous administrative expense Customer support expenses Total variable cost $ $ Fixed cost: Miscellaneous administrative expense $ $ $ Office salaries expense Customer support expenses Research and development expense Total fixed cost $ $ $ Total selling and administrative expenses $ $
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