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	6% of sales
Advertising expense	13% of sales
Miscellaneous administrative expense	$8,500 per month plus 5% of sales
Office salaries expense	$47,000 per month
Customer support expenses	$20,000 per month plus 28% of sales
Research and development expense	$75,000 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.

Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $900,000, and $1,100,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers.

Digital Solutions Inc.

Flexible Selling and Administrative Expenses Budget

For the Month Ending October 31