The Cottonwood Company manufactures mattresses and has for sales volumes of $300,000, $350,000, and $400,000, based on the following data:

Sales commissions	6% of sales
Sales manager's salary	$120,000 per month
Advertising expense	$90,000 per month
Shipping expense	1% of sales
Miscellaneous selling expense	$6,000 per month plus 1.5% of sales

Required:

Prepare a monthly flexible selling expense budget for Cottonwood Company for December, 2016. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.

Labels

December 31, 2016

For the Month Ending December 31, 2016

Amount Descriptions

Advertising expense

Miscellaneous selling expense

Sales commissions

Sales manager's salary

Sales volume

Shipping expense

Total fixed expense

Total selling expense

Total variable expense

Prepare a monthly flexible selling expense budget for Cottonwood Company for December, 2016. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.

Cottonwood Company

Monthly Selling Expense Budget

1	Sales volume	$300,000.00	$350,000.00	$400,000.00
2	Variable expense:
3
4
5
6
7	Fixed expense:
8
9
10
11
12