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	14% of sales
Advertising expense	20% of sales
Miscellaneous administrative expense	$5,000 per month plus 12% of sales
Office salaries expense	$28,000 per month
Customer support expenses	$13,000 per month plus 20% of sales
Research and development expense	$32,000 per month

Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000,$500,000, and $600,000. (Use Exhibit 5 as a model.)