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

Advertising expense

Miscellaneous administrative expense

Office salaries expense

Customer support expenses

Research and development expense

$8\%$ of sales

$15\%$ of sales

$$10,000$ per month plus $4\%$ of sales

$$50,000$ per month

$$20,000$ per month plus $30\%$ of sales

$$75,000$ per month

Prepare a flexible selling and administrative expenses budget for October for sales volumes of $$500,000,$$$750,000,$ and $$1,000,000.($Use Exhibit $4$ as a model.$)$

Digital Solutions Inc.

Flexible Selling and Administrative Expenses Budget

For the Month Ending October $31$

Line Item Description

$\backslash$table$[[$Amount Amount Amount$],[$Total sales$],[$Variable cost:$],[$$$500,000,$$$750,000,$$$1,000,000$