FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
Publisher: MCG
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(2) Digital Solutions Inc. uses flexible budgets that are based on the following data:

Sales commissions 8% of sales
Advertising expense 16% of sales
Miscellaneous administrative expense $8,000 per month plus 5% of sales
Office salaries expense $50,000 per month
Customer support expenses $18,000 per month plus 32% of sales
Research and development expense $73,000 per month

 

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.

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