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Flexible Budget for Selling and Administrative Expenses for a Service Company 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 15% of sales Advertising expense 20% of sales Miscellaneous administrative expense $6,500 per month plus 12% of sales office salaries expense $28,000 per month Customer support expenses $12,000 per month plus 20% of sales Research and development expense $30,000 per month Prepare a flexible selling and administrative expenses budget for March for sales volumes of $400,000, $500,000, and $500,000. (Use Exhibit 5 as a model.) Cloud Productivity Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending March 31 Total sales $400000 $500000 $600000 Variable cost Sales commissions 60,000 75,000 90,000 Advertising expense 80,000 100,000 120,000 Miscellaneous administrative expense 54,500 X 66,500 X 78,500 X Customer support expenses 92.000 X 112,000 X 132,000 X 286,500 X Total variable cost Fixed cost: Miscellaneous administrative expense Office salaries expense Customer support expenses Research and development expense Total fixed cost s Total selling and administrative expenses