Flexible Budget for Selling and Administrative Expenses for a Service Company

Digital Solutions Inc. uses flexible budgets that are based on the following data:

Line Item DescriptionValueSales commissions10% of salesAdvertising expense15% of salesMiscellaneous administrative expense$11,500 per month plus 6% of salesOffice salaries expense$46,000 per monthCustomer support expenses$24,000 per month plus 31% of salesResearch and development expense$75,000 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.

Prepare a flexible selling and administrative expenses budget for October for sales volumes of $600,000, $700,000, and $1,100,000. (Use Exhibit 4 as a model.) Enter all amounts as positive numbers.

Line Item DescriptionAmountAmountAmountTotal sales$600,000$700,000$1,100,000Variable cost:Sales comissions$fill in the blank 3$fill in the blank 4$fill in the blank 5Advertising expensefill in the blank 7fill in the blank 8fill in the blank 9Miscellaneous administrative expensefill in the blank 11fill in the blank 12fill in the blank 13Customer support expensesfill in the blank 15fill in the blank 16fill in the blank 17Total variable cost$fill in the blank 18$fill in the blank 19$fill in the blank 20Fixed cost:Miscellaneous administrative expense$fill in the blank 22$fill in the blank 23$fill in the blank 24Office salaries expensefill in the blank 26fill in the blank 27fill in the blank 28Customer support expensesfill in the blank 30fill in the blank 31fill in the blank 32Research and development expensefill in the blank 34fill in the blank 35fill in the blank 36Total fixed cost$fill in the blank 37$fill in the blank 38$fill in the blank 39Total selling and administrative expenses$fill in the blank 40$fill in the blank 41$fill in the blank 42