The actual selling expenses incurred in March 2017 by Fallon Company are as follows.

Instructions
(a) Prepare a flexible budget performance report for March using the budget data in E24-5, assuming that March sales were $170,000.
(b) Prepare a flexible budget performance report, assuming that March sales were $180,000.
(c) Comment on the importance of using flexible budgets in evaluating the performance of the salesmanager.

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Variable Expenses Fixed Expenses Sales commissions6.900 Depreciatior1.000 Advertising Travel Delivery Sales salaries Depreciation Insurance $35,000 7,000 6,900 5, 100 3,450