Flexible Budget for Selling and Administrative Expenses for a Service Company
Morningside Technologies Inc. uses flexible budgets that are based on the following data:
Sales commissions | 7% of sales |
Advertising expense | 20% of sales |
Miscellaneous administrative expense | $1,850 per month plus 2% of sales |
Office salaries expense | $17,000 per month |
Customer support expenses | $2,600 plus 3% of sales |
Research and development expense | 4,600 per month |
Prepare a flexible selling and administrative expenses budget for April for sales volumes of $115,000, $145,000, and $175,000. Enter all amounts as positive numbers.
Morningside Technologies Inc. | |||
Flexible Selling and Administrative Expenses Budget | |||
For the Month Ending April 30 | |||
Total sales | $115,000 | $145,000 | $175,000 |
Variable cost: | |||
Sales commissions | $ | $ | $ |
Advertising expense | |||
Miscellaneous administrative expense | |||
Customer support expenses | |||
Total variable cost | $ | $ | $ |
Fixed cost: | |||
Miscellaneous administrative expense | $ | $ | $ |
Office salaries expense | |||
Customer support expenses | |||
Research and development expense | |||
Total fixed cost | $ | $ | $ |
Total selling and administrative expenses | $ | $ | $ |
Morningside Technologies Inc. | |||
Flexible Selling and Administrative Expenses Budget | |||
For the Month Ending April 30 | |||
Total sales | $ 1,15,000 | $ 1,45,000 | $ 1,75,000 |
Variable cost: | |||
Sales commissions | $ 8,050 | $ 10,150 | $ 12,250 |
Advertising expense | $ 23,000 | $ 29,000 | $ 35,000 |
Miscellaneous administrative expense | $ 2,300 | $ 2,900 | $ 3,500 |
Customer support expenses | $ 3,450 | $ 4,350 | $ 5,250 |
Total variable cost | $ 36,800 | $ 46,400 | $ 56,000 |
Fixed cost: | |||
Miscellaneous administrative expense | $ 1,850 | $ 1,850 | $ 1,850 |
Office salaries expense | $ 17,000 | $ 17,000 | $ 17,000 |
Customer support expenses | $ 2,600 | $ 2,600 | $ 2,600 |
Research and development expense | $ 4,600 | $ 4,600 | $ 4,600 |
Total fixed cost | $ 26,050 | $ 26,050 | $ 26,050 |
Total selling and administrative expenses | $ 62,850 | $ 72,450 | $ 82,050 |
Flexible Budget for Selling and Administrative Expenses for a Service Company Morningside Technologies Inc. uses flexible...
Flexible Budget for Selling and Administrative Expenses for a Service Company Morningside Technologies Inc. uses flexible budgets that are based on the following data: Sales commissions 6% of sales Advertising expense 18% of sales Miscellaneous administrative expense $1,700 per month plus 2% of sales Office salaries expense $16,000 per month Customer support expenses $2,350 plus 3% of sales Research and development expense 4,200 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $105,000,...
Morningside Technologies Inc. uses flexible budgets that are based on the following data: Sales commissions 10% of sales Advertising expense 15% of sales Miscellaneous administrative expense $1,700 per month plus 1% of sales Office salaries expense $16,000 per month Customer support expenses $2,350 plus 2% of sales Research and development expense 3,150 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $105,000, $130,000, and $160,000. Enter all amounts as positive numbers. Morningside Technologies...
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