Question

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 6% of sales Advertising expense 15% of sales Miscellaneous administrative expense Office salaries expense $12,000 per month plus 5% of sales $52,000 per month $20,000 per month plus 32% of sales $77,000 per month Customer support expenses Research and development expense This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.
How do I get these numbers?

Answer 1

Digital Solution Inc.
Flexible Selling and Administrative Expenses Budget
For the month ending October 31
Total Sales	$                         6,00,000	$             7,00,000	$        10,00,000
Variable Cost:
Sales Commissions(Total Sales*6%)	$                            36,000	$                42,000	$             60,000
Advertising expenses(Total Sales*15%)	$                            90,000	$             1,05,000	$          1,50,000
Miscllaneous admin expense-Variable(Total Sales*5%)	$                            30,000	$                35,000	$             50,000
Customer support expense-Variable(Total Sales*32%)	$                         1,92,000	$             2,24,000	$          3,20,000
Total Variable Costs	$                         3,48,000	$             4,06,000	$          5,80,000
Fixed Costs:
Miscllaneous admin expense-Variable	$                            12,000	$                12,000	$             12,000
Office Salaries expense	$                            52,000	$                52,000	$             52,000
Customer support expense-Variable	$                            20,000	$                20,000	$             20,000
Research and development expense	$                            77,000	$                77,000	$             77,000
Total Fixed Costs	$                         1,61,000	$             1,61,000	$          1,61,000
Total Selling and Administrative Expenses	$                         5,09,000	$             5,67,000	$          7,41,000