Flexible budget for selling and administrative expenses for a service company
Social Media Inc. uses flexible budgets that are based on the following data:
Sales commissions ..
.15% of sales
..20% of sales
Miscellaneous administrative expenses
.$7,000 per month plus 10% of sales
Office salaries expense .
$35,000 per month
Customer support expenses .
.$11,000 per month plus 18% sales
Research and development expense ……
..$35,000 per month
Prepare a flexible selling and administrative expenses budget for June 2016 for sales volume $400,000,
$500,000 and $600,000.Business