Homework $-$ Chapter $22$

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

Advertising expense

Miscellaneous administrative expense

Office salaries expense

Customer support expenses

Research and development expense

$15\%$ of sales

$18\%$ of sales

$$9,000$ per month plus $12\%$ of sales

$$29,000$ per month

$$14,000$ per month plus $20\%$ of sales

$$31,000$ 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 $31$

$\backslash$table$[[$Line Item Description,Amount,Amount,Amount$],[$Total sales,$$400,000,$$$500,000,$$$600,000$