Question: Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 10% of sales Advertising expense 15% of sales Miscellaneous administrative


Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 10% of sales Advertising expense 15% of sales Miscellaneous administrative expense $11,000 per month plus 4% of sales Office salaries expense $45,000 per month Customer support expenses $19,000 per month plus 32% of sales Research and development expense $75,000 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. Prepare a flexible selling and administrative expenses budget for October for sales volumes of $500,000, $700,000, and $1,000,000. (Use Exhibit 5 as a model.) Enter all amounts as positive num Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 $500,000 $700,000 Total sales $1,000,000 Variable cost: Sales commissions 50,000 70,000 $ 100,000 Advertising expense 75,000 105,000 150,000 Miscellaneous administrative expense 20,000 28,000 40,000 Customer support expenses Total variable cost $ $ $ Fixed cost: Miscellaneous administrative expense Office salaries expense Customer support expenses Research and development expense Total fixed cost $ Total selling and administrative expenses
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