Question: Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 6% of sales Advertising expense 14% of sales Miscellaneous administrative

Digital Solutions Inc. uses flexible budgets that are based on the following data:

Sales commissions 6% of sales
Advertising expense 14% of sales
Miscellaneous administrative expense $10,000 per month plus 3% of sales
Office salaries expense $55,000 per month
Customer support expenses $17,000 per month plus 30% of sales
Research and development expense $75,000 per month

repare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $700,000, and $1,000,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers.

Digital Solutions Inc.
Flexible Selling and Administrative Expenses Budget
For the Month Ending October 31
Total sales $400,000 $700,000 $1,000,000
Variable cost:
$ $ $
Total variable cost $ $ $
Fixed cost:
$ $ $
Total fixed cost $ $ $
Total selling and administrative expenses $ $ $

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