Question
Flexible budget for selling and administrative expenses for a service company Social Media Inc. uses flexible budgets that are based on the following data: Sales
Flexible budget for selling and administrative expenses for a service company Social Media Inc. uses flexible budgets that are based on the following data:
Sales commissions ............................................................15% of sales
Advertising expense..........................................................20% of sales
Miscellaneous administrative expenses...........................$7,000 per month plus 10% of sales
Office salaries expense .....................................................$35,000 per month
Customer support expenses.............................................$11,000 per month plus 18% sales
Research and development expense................................$35,000 per month
Prepare a flexible selling and administrative expenses budget for June 2016 for sales volume $400,000, $500,000 and $600,000.
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