After John because familiar with the flexible budget report, he began to analyze the numbers. John...

 

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After John because familiar with the flexible budget report, he began to analyze the numbers. John feels that sales can be increased if JA Outdoor Company would increase sales commissions to $33.00 per unit. This would allow them to reduce advertising expense to $8.50 per unit. John thinks that these changes will motivate the sales staff to sell at least 5,500 units. He is allowed to try his plan in December and had the following results. JA Outdoor Company Winter Sports Department Results For the Month Ended December 31, 2020 Sales in units 5,500 Variable expenses Sales commissions Advertising expense Travel expense Demonstration models given out Total variable: Fixed expenses Rent Sales salaries Office salaries $174,900 44,650 256,600 110,700 586,850 8,200 60,500 40,400 Prepare a budget report based on flexible budget data. The new depreciation amount has been included in the budgeted fixed costs. (Round per unit answers to 2 decimal places, e.g. 15.25.) After John because familiar with the flexible budget report, he began to analyze the numbers. John feels that sales can be increased if JA Outdoor Company would increase sales commissions to $33.00 per unit. This would allow them to reduce advertising expense to $8.50 per unit. John thinks that these changes will motivate the sales staff to sell at least 5,500 units. He is allowed to try his plan in December and had the following results. JA Outdoor Company Winter Sports Department Results For the Month Ended December 31, 2020 Sales in units 5,500 Variable expenses Sales commissions Advertising expense Travel expense Demonstration models given out Total variable: Fixed expenses Rent Sales salaries Office salaries $174,900 44,650 256,600 110,700 586,850 8,200 60,500 40,400 Prepare a budget report based on flexible budget data. The new depreciation amount has been included in the budgeted fixed costs. (Round per unit answers to 2 decimal places, e.g. 15.25.)

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To prepare a budget report based on the flexible budget data we need to calculate the budgeted amoun... View the full answer