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

Line Item Description	Value
Sales commissions	8% of sales
Advertising expense	15% of sales
Miscellaneous administrative expense	$10,000 per month plus 4% of sales
Office salaries expense	$50,000 per month
Customer support expenses	$20,000 per month plus 30% of sales
Research and development expense	$75,000 per month

Prepare a flexible selling and administrative expenses budget for October for sales volumes of $500,000, $750,000, and $1,000,000. (Use Exhibit 4 as a model.)

Line Item Description	Amount	Amount	Amount
Total sales	$500,000	$750,000	$1,000,000
Variable cost:
CashOffice salaries expenseSales commissionsSupplies expenseWages expenseSales commissions	$Sales commissions	$Sales commissions	$Sales commissions
Advertising expenseCashOffice salaries expenseSupplies expenseWages expenseAdvertising expense	Advertising expense	Advertising expense	Advertising expense
Miscellaneous administrative expenseOffice salaries expensePrepaid insuranceRent expenseWages expenseMiscellaneous administrative expense	Miscellaneous administrative expense	Miscellaneous administrative expense	Miscellaneous administrative expense
Customer support expensesRent expenseResearch and development expenseSupplies expenseWages expenseCustomer support expenses	Customer support expenses	Customer support expenses	Customer support expenses
Total variable cost	$Total variable cost	$Total variable cost	$Total variable cost
Fixed 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 expense	Office salaries expense	Office salaries expense
Customer support expensesInsurance expenseRent expenseSupplies expenseWages expenseCustomer support expenses	Customer support expenses	Customer support expenses	Customer support expenses
Insurance expenseRent expenseResearch and development expenseSupplies expenseWages expenseResearch and development expense	Research and development expense	Research and development expense	Research and development expense
Total fixed cost	$Total fixed cost	$Total fixed cost	$Total fixed cost
Total selling and administrative expenses	$Total selling and administrative expenses	$Total selling and administrative expenses	$Total selling and administrative expenses