Net Vision uses flexible budgets that are based on the following data: Sales Com

Question

Net Vision uses flexible budgets that are based on the following data:
Sales Commissions: 10% of sales
Advertising expense: 18% of sales
Miscellaneous selling expense: $2800 per month plus 4% of sales
Office salaries expense: $18000 per month
Office Supplies expense: 3% of sales
Miscellaneous administrative expense: $2200 per month plus 2% of sales

Prepare a flexible selling and administrative expenses budget for January 2012, for sales volumes of $100,000, $125,000, and $150,000. Enter all amounts as positive numbers.


Net Vision
Flexible Selling and Administrative Expenses Budget
For the Month Ending January 31, 2012

Total sales $ 100000 $ 125000 $ 150000
Variable cost:
Sales commissions ? ? ?
Advertising expense ? ? ?
Miscellaneous selling expense ? ? ?
Office supplies expense ? ? ?
Miscellaneous administrative expense ? ? ?
Total variable cost ? ? ?

Fixed cost:
Miscellaneous selling expense ? ? ?
Office salaries expense ? ? ?
Miscellaneous administrative expense ? ? ?
Total fixed cost ? ? ?
Total selling and administrative expenses ? ? ?

Explanation / Answer

100000 Sales Commissions 10000 Advertising Expense 18000 Misc. Selling Exp 6800 Salaries Expense 18000 Supplies Expense 3000 Misc. Admin.Exp 4200 Total 60000 125000 Sales Commissions 12500 Advertising Expense 22500 Misc. Selling Exp 7800 Salaries Expense 18000 Supplies Expense 3750 Misc. Admin.Exp 4700 Total 69250 150000 Sales Commissions 15000 Advertising Expense 27000 Misc. Selling Exp 8800 Salaries Expense 18000 Supplies Expense 4500 Misc. Admin.Exp 5200 Total 78500

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