FINANCIAL ACCOUNTING
10th Edition
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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