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Flexible budget for selling and administrative expenses for a service company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 8% of sales Advertising expense 15% of sales Miscellaneous administrative expense $10,500 per month plus 5% of sales Office salaries expense $54,000 per month Customer support expenses $19,000 per month plus 30% of sales Research and development expense $77,000 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. X Open spreadsheet Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $900,000, and $1,200,000. (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 $900,000 $1,200,000 Variable cost: 2$ Total variable cost %24 Fixed cost: $4 %$4 Total fixed cost Total selling and administrative expenses Flexible budget for selling and administrative expenses for a service company Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 8% of sales Advertising expense 15% of sales Miscellaneous administrative expense $10,500 per month plus 5% of sales Office salaries expense $54,000 per month Customer support expenses $19,000 per month plus 30% of sales Research and development expense $77,000 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. X Open spreadsheet Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $900,000, and $1,200,000. (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 $900,000 $1,200,000 Variable cost: 2$ Total variable cost %24 Fixed cost: $4 %$4 Total fixed cost Total selling and administrative expenses
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A C D E 1 Digital Solutions Inc Flexible Selling and Administrative Expense ... View the full answer
Related Book For
Financial & Managerial Accounting
ISBN: 978-1337902663
15th edition
Authors: Carl Warren, Jefferson P. Jones, William B. Tayler
Posted Date:
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