Lapp Manufacturing uses flexible budgets to control its selling expenses. Monthly sales are expected to be from $400,000 to $480,000. Variable costs and their percentage relationships to sales are:
Fixed selling expenses consist of sales salaries $80,000 and depreciation on delivery equipment $20,000.
Instructions
Prepare a flexible budget for increments of $40,000 of sales within the relevant range.

Question

Lapp Manufacturing uses flexible budgets to control its selling expenses. Monthly sales are expected to be from $400,000 to $480,000. Variable costs and their percentage relationships to sales are:  
Fixed selling expenses consist of sales salaries $80,000 and depreciation on delivery equipment $20,000.
Instructions
Prepare a flexible budget for increments of $40,000 of sales within the relevant range.

Quizplus · Accepted Answer

The Answer of Lapp Manufacturing uses flexible budgets to control its selling expenses. Monthly sales are expected to be from $400,000 to $480,000. Variable costs and their percentage relationships to sales are:  
Fixed selling expenses consist of sales salaries $80,000 and depreciation on delivery equipment $20,000.
Instructions
Prepare a flexible budget for increments of $40,000 of sales within the relevant range.

Lapp Manufacturing Uses Flexible Budgets to Control Its Selling Expenses