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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 7% of sales Advertising expense 14% of sales Miscellaneous administrative expense $9,000 per month plus 3% of sales Office salaries expense $55,000 per month Customer support expenses $15,000 per month plus 33% of sales Research and development expense $79,000 per month 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. X Open spreadsheet Prepare a flexible selling and administrative expenses budget for October for sales volumes of $600,000, $900,000, 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 $600,000 $900,000 $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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