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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

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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 10% of sales Advertising expense 16% of sales Miscellaneous administrative expense $9,500 per month plus 5% of sales Office salaries expense $54,000 per month Customer support expenses $17,000 per month plus 32% of sales Research and development expense $73,000 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. Open spreadsheet Prepare a flexible selling and administrative expenses budget for October for sales volumes of $600,000, $700,000, and $1,100,000. (Use Exhibits as a model) Enter all amounts as positive numbers, Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 Total sales $600,000 $700,000 $1,100,000 Variable cost: Sales commissions 60,000 70,000 V 100,000 x Advertising expense 96,000 112,000 160,000 X Miscellaneous administrative expense 36,000 X 42,000 X 60,000 X CHAMA wense 103 and 74 AA ann Check My Work more Check My Work uses romaining Previous Next > All work saved Email Instructor Save and Exit Sutmismeetodi Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 $600,000 $700,000 $1,100,000 Total sales 100,000 X Variable cost: Sales commissions Advertising expense Miscellaneous administrative expense 60,000 V 96,000 36,000 x 192,000 70,000 112,000 42,000 X 160,000 x 60,000 x 224,000 320,000 X Customer support expenses 384,000 X 448,000 X $ Total variable cost 640,000 X Fixed cost: Miscellaneous administrative expense 9,500 9,500 9,500 50,000 X Office salaries expense 50,000 X 50,000 X 22,000 X Customer support expenses 22,000 X 22,000 X Research and development expense 77,000 x 77,000 X 77,000 X 158,500 X Total fixed cost 158,500 X 542,500 X 158,500 X 606,500 x Total selling and administrative expenses 798,500 x

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