1. Flexible Budget for Selling and Administrative Expenses for a Service Company

   Morningside Technologies Inc. uses flexible An accounting device used to plan and control resources of operational departments and divisions.budgets that are based on the following data:

   Sales commissions	6% of sales
   Advertising expense	25% of sales
   Miscellaneous administrative expense	$1,350 per month plus 1% of sales
   Office salaries expense	$13,000 per month
   Customer support expenses	$1,900 plus 2% of sales
   Research and development expense	2,550 per month

   Prepare a flexible selling and administrative expenses budget for April for sales volumes of $85,000, $105,000, and $130,000. Enter all amounts as positive numbers.

   Morningside Technologies Inc.
   Flexible Selling and Administrative Expenses Budget
   For the Month Ending April 30
   Total sales	$85,000	$105,000	$130,000
   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	$	$	$