Flexible Budget for Selling and Administrative Expenses for a Service Company Digital Solutions Inc. uses nexible budgets that are based on the following data: Sales commissions 1496 of sales Advertising expense 18% of sales Miscellaneous administrative expense $8,000 per month plus 129 of sales Office salaries expense $28,000 per month Customer support expenses $14,000 per month plus 20% of sales Research and development expense $30,000 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 5400,000 $500,000 $600,000 Variable cost: Sales commissions 56.000 70.000 34.000 Advertising expense 30.000 x 100,000 X 120,000 X Miscellaneous administrative expense 40.000 60,000 72.000 Customer support expenses 30.000 100,000 120, H 264.000 x 330.000 x 396,000 x Total variable cost Fixed cost: Miscellaneous administrative expense 3.000 8.000 8,000 Office salaries expense 29.000 X 29.000 x 29,000 X Customer support expenses 13,000 X 13,000 X 13,000 X Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $500,000, and $500,000. (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 Sales commissions 56.000 70,000 34,000 Advertising expense 80,000 X 100,000 X 120.000 X Miscellaneous administrative expense 40.000 60.000 72.000 Customer support expenses 30,000 100,000 120.000 Total variable cost 264,000 X 330,000 X 396,000 X Fixed cost: Miscellaneous administrative expense 3.000 3.000 11.000 29.000X 29,000 X 29.000 X Office salaries expense Customer support expenses Research and development expense 13.000 X 13.000 X 13.000 X 30,000 30.000 30,000 80,000 H0 0 0 80,000 Total fixed cost 344,000 X 410,000 X 476,000 X Total selling and administrative expenses