Problem $3$

Vincent Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from

$$170,000$ to $$200,000.$ Variable costs and their percentage relationship to sales are as follows: sales commissions $6\%$ :

advertising $4\%,$ travel $3\%,$ and delivery $2\%.$ Fixed selling expenses consist of sales salaries $$35,000$; depreciation on

delivery equipment $$7,000,$ and insurance on delivery equipment $$1,000.$

instructions:

Prepare a monthly flexible budget for each $$10,000$ increment of sales within the relevant range.