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Flexible budget for selling and administrative expenses for a service company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions Advertising expense Miscellaneous administrative expense Office salaries expense Customer support expenses Research and development expense Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 4 as a model.) Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 Line Item Description Total sales Variable cost: Sales commissions Advertising expense Miscellaneous administrative expense Customer support expenses Total variable cost 14% of sales 18% of sales $7,000 per month plus 12% of sales $28,000 per month $13,000 per month plus 20% of sales $31,000 per month Fixed cost: Amount Amount Amount $400,000 $500,000 $600,000

Flexible budget for selling and administrative expenses for a service company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions Advertising expense Miscellaneous administrative expense Office salaries expense Customer support expenses Research and development expense Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 4 as a model.) Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 Line Item Description Total sales Variable cost: Sales commissions Advertising expense Miscellaneous administrative expense Customer support expenses Total variable cost 14% of sales 18% of sales $7,000 per month plus 12% of sales $28,000 per month $13,000 per month plus 20% of sales $31,000 per month Fixed cost: Amount Amount Amount $400,000 $500,000 $600,000

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 26BEB: Variable Cost Ratio, Contribution Margin Ratio Chillmax Company plans to sell 3,500 pairs of shoes...
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Flexible budget for selling and administrative expenses for a service company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 14% of sales 18% of sales $7,000 per month plus 12% of sales $28,000 per month $13,000 per month plus 20% of sales $31,000 per month Advertising expense Miscellaneous administrative expense Office salaries expense Customer support expenses Research and development expense Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 4 as a model.) Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 Line Item Description Total sales Variable cost: Sales commissions Advertising expense Miscellaneous administrative expense Customer support expenses Total variable cost ✓ Total fixed cost Fixed cost: Miscellaneous administrative expense ✓ Office salaries expense Customer support expenses -✓ Research and development expense Feedback ✓ ✓ Check My Work Total selling and administrative expenses Amount Amount Amount $400,000 $500,000 $600,000 $ $
Transcribed Image Text:Flexible budget for selling and administrative expenses for a service company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 14% of sales 18% of sales $7,000 per month plus 12% of sales $28,000 per month $13,000 per month plus 20% of sales $31,000 per month Advertising expense Miscellaneous administrative expense Office salaries expense Customer support expenses Research and development expense Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 4 as a model.) Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 Line Item Description Total sales Variable cost: Sales commissions Advertising expense Miscellaneous administrative expense Customer support expenses Total variable cost ✓ Total fixed cost Fixed cost: Miscellaneous administrative expense ✓ Office salaries expense Customer support expenses -✓ Research and development expense Feedback ✓ ✓ Check My Work Total selling and administrative expenses Amount Amount Amount $400,000 $500,000 $600,000 $ $
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