Dewitt company uses flexible budgets to control its selling

Reference no: EM13613444

DeWitt Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $170,000 to $200,000. Variable costs and their percentage relationship to sales are: Sales Commissions 6%, Advertising 4%, Traveling 3%, and Delivery 2%. Fixed selling expenses will consist of Sales Salaries $35,000, Depreciation on Delivery Equipment $7,000, and Insurance on Delivery Equipment $1,000. Prepare a monthly flexible budget for each $10,000 increment of sales within the relevant range for the year ending December 31, 2014.

Reference no: EM13613444

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