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How do I get these numbers? Flexible budget for selling and administrative expenses for a service company Digital Solutions Inc. uses flexible budgets that are
How do I get these numbers?
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 15% of sales Miscellaneous administrative expense Office salaries expense $12,000 per month plus 5% of sales $52,000 per month $20,000 per month plus 32% of sales $77,000 per month Customer support expenses Research and development expense 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 $600,000, $700,000, and $1,000,000. (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 $600,000 $700,000 $1,000,000 Total sales Variable cost: Total variable cost Fixed cost: Total fixed cost Total selling and administrative expensesStep by Step Solution
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