Question: Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 8% of sales Advertising expense Miscellaneous administrative expense Office salaries

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

Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 8% of sales Advertising expense Miscellaneous administrative expense Office salaries expense 15% of sales $10,000 per month plus 4% of sales $50,000 per month $20,000 per month plus 30% of sales $75,000 per month Customer support expenses Research and development expense Prepare a flexible selling and administrative expenses budget for October for sales volumes of $500,000, $750,000, and $1,000,000. (Use Exhibit 5 as a model.) Digital Solutions Inc. Flexible Selling and Admipistrative Expenses Budget For the Month Ehding October 31 Total sales $500,000 $750,000 $1,000,000 Variable cost Total variable cost Fixed cost: Total fixed cost Total selling and administrative expenses

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