Question: Digital Solutions Inc. uses flexible budgets that are based on the following data: Line Item DescriptionValueSales commissions 1 5 % of salesAdvertising expense 1 8

Digital Solutions Inc. uses flexible budgets that are based on the following data: Line Item DescriptionValueSales commissions15% of salesAdvertising expense18% of salesMiscellaneous administrative expense$5,500 per month plus 12% of salesOffice salaries expense$28,000 per monthCustomer support expenses$14,000 per month plus 20% of salesResearch and development expense$30,000 per month 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 31Line Item DescriptionAmountAmountAmountTotal sales$400,000$500,000$600,000Variable cost: CashOffice salaries expenseSales commissionsSupplies expenseWages expenseSales commissions $Sales commissions$Sales commissions$Sales commissions Advertising expenseCashOffice salaries expenseSupplies expenseWages expenseAdvertising expense Advertising expenseAdvertising expenseAdvertising expense Miscellaneous administrative expenseOffice salaries expensePrepaid insuranceRent expenseWages expenseMiscellaneous administrative expense Miscellaneous administrative expenseMiscellaneous administrative expenseMiscellaneous administrative expense Customer support expensesRent expenseResearch and development expenseSupplies expenseWages expenseCustomer support expenses Customer support expensesCustomer support expensesCustomer support expensesTotal variable cost$Total variable cost$Total variable cost$Total variable costFixed cost: Insurance expenseMiscellaneous administrative expenseRent expenseSupplies expenseWages expenseMiscellaneous administrative expense $Miscellaneous administrative expense$Miscellaneous administrative expense$Miscellaneous administrative expense Insurance expenseOffice salaries expensePrepaid insuranceRent expenseWages expenseOffice salaries expense Office salaries expenseOffice salaries expenseOffice salaries expense Customer support expensesInsurance expenseRent expenseSupplies expenseWages expenseCustomer support expenses Customer support expensesCustomer support expensesCustomer support expenses Insurance expenseRent expenseResearch and development expenseSupplies expenseWages expenseResearch and development expense Research and development expenseResearch and development expenseResearch and development expenseTotal fixed cost$Total fixed cost$Total fixed cost$Total fixed costTotal selling and administrative expenses$Total selling and administrative expenses$Total selling and administrative expenses$Total selling and administrative expenses

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