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	$7,000 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.)

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 Variable cost: $400000 $500000 $600000 Total variable cost Fixed cost: Total fixed cost Total selling and administrative expenses Next Check My Work 5 more Check My Work uses remaining