Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $167,300 to $209,300. Variable costs and their percentage relationship to sales are sales commissions 7%, advertising 6%, travel 4%, and delivery 1%. Fixed selling expenses will consist of sales salaries $34,900, depreciation on delivery equipment $7,100, and insurance on delivery equipment $1,900. Prepare a monthly selling expense flexible budget for each $14,000 increment of sales within the relevant range for the year ending December 31, 2020.

Respuesta :

Answer and Explanation:

According to the scenario, computation of the given data are as follows:

Monthly sales expected range = $167,300 - $209,300

Sales commission = 7%

Advertisement = 6%

Travel = 4%

Delivery = 1%

The monthly selling expense flexible budget for each $14,000 increment of sales  are shown in the attachment attached below.

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