Flexible Budget for Selling and Administrative Expenses for a Service Company

Cloud Productivity Inc. uses flexible budgets that are based on the following data:

Sales commissions	14% of sales
Advertising expense	20% of sales
Miscellaneous administrative expense	$5,500 per month plus 12% of sales
Office salaries expense	$29,000 per month
Customer support expenses	$12,000 per month plus 20% of sales
Research and development expense	$31,000 per month

Prepare a flexible selling and administrative expenses budget for March for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 5 as a model.)

Cloud Productivity Inc.
Flexible Selling and Administrative Expenses Budget
For the Month Ending March 31
Total sales	$400000	$500000	$600000
Variable cost:
Sales commissions	$fill in the blank 2	$fill in the blank 3	$fill in the blank 4
Advertising expense	fill in the blank 6	fill in the blank 7	fill in the blank 8
Miscellaneous administrative expense	fill in the blank 10	fill in the blank 11	fill in the blank 12
Customer support expenses	fill in the blank 14	fill in the blank 15	fill in the blank 16
Total variable cost	$fill in the blank 17	$fill in the blank 18	$fill in the blank 19
Fixed cost:
Miscellaneous administrative expense	$fill in the blank 21	$fill in the blank 22	$fill in the blank 23
Office salaries expense	fill in the blank 25	fill in the blank 26	fill in the blank 27
Customer support expenses	fill in the blank 29	fill in the blank 30	fill in the blank 31
Research and development expense	fill in the blank 33	fill in the blank 34	fill in the blank 35
Total fixed cost	$fill in the blank 36	$fill in the blank 37	$fill in the blank 38
Total selling and administrative expenses	$fill in the blank 39	$fill in the blank 40	$fill in the blank 41