Ch$22-$ Excel Assignment

eBook

Show Me How

Office $365$

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

$9\%of$ sales

Advertising expense

$16\%$ of sales

Miscellaneous administrative expense

$$8,000$ per month plus $5\%$ of sales

office salaries expense

$$51,000$ per month

Customer support expenses

$$21,000$ per month plus $32\%$ of sales

Research and development expense

$$70,000$ per month

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.

$x$

Open spreadsheet

Digital Solutions Inc.

Flexible Selling and Administrative Expenses Budget For the Month Ending October $31$

Total sales

$$600,000,$$$800,000,$$$1,200,000$

Variable cost:

Sales commissions

Advertising expense

$$54,000$

$$72,000$

$$108,000$

Miscellaneous administrative expense

$96,000$

$128,000$

$192,000$

Assignment Score: $42\mathrm{.}37\%$

MacBook Pro