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

$14\%$ of sales

Advertising expense

$20\%$ of sales

Miscellaneous administrative expense

Office salaries expense

$$8,000$ per month plus $12\%$ of sales

$$28,000$ per month

Customer support expenses

$$13,000$ 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 $31$

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For each level of sales activity, show all variable expenses and all fixed expenses.