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	15% of sales
Advertising expense	20% of sales
Miscellaneous administrative expense	$6,000 per month plus 12% of sales
Office salaries expense	$29,000 per month
Customer support expenses	$13,000 per month plus 20% of sales
Research and development expense	$31,000 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.)

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 15% of sales 20% of sales Advertising expense Miscellaneous administrative expense $6,000 per month plus 12% of sales Office salaries expense $29,000 per month Customer support expenses Research and development expense $13,000 per month plus 20% of sales $31,000 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.) Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 Total sales $400,000 $500,000 $600,000 Variable cost: Total variable cost Fixed cost: DOL phoon Du Total fixed cost Total selling and administrative expenses