Prepare flexible selling for cloud productivity inc

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Flexible budget for selling and administrative expenses for a service company Cloud Productivity Inc. uses flexible budgets that are based on the following data:

Sales commissions ......................................... 12% of sales

Advertising expense........................................ 16% of sales

Miscellaneous administrative expense ....................... $5,000 per month plus 12% of sales Office salaries expense ..................................... $25,000 per month

Customer support expenses................................. $11,000 per month plus 20% of sales Research and development expense......................... $35,000 per month

Problem 1: Create a flexible selling and administrative expenses budget for March for sales volumes of $300,000, $400,000, and $500,000. The budget schedule should present the variable expenses in the upper part of the schedule and the fixed expenses in the lower part, and the sum of both.

 

Reference no: EM132960404

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