Prepare a monthly selling expense flexible budget

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Problem - Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $172,100 to $205,400. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 6%, travel 3%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,400, depreciation on delivery equipment $6,500, and insurance on delivery equipment $1,200. Prepare a monthly selling expense flexible budget for each $11,100 increment of sales within the relevant range for the year ending December 31, 2020.

Reference no: EM132836937

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