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Prepare a Monthly Flexible Selling Expense Budget for Podism Company

Question 176

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Prepare a monthly flexible selling expense budget for Podism Company for sales volumes of $270,000, $350,000, and $480,000, based on the following data:  Sales commissions 7% of sales  Sales manager’s salary $62,000 per month  Advertising expense $70,000 per month  Shipping expense 2% of sales  Miscellaneous selling expense $2,500 per month plus 1/2% of sales \begin{array} { l l } \text { Sales commissions } & 7 \% \text { of sales } \\\text { Sales manager's salary } & \$ 62,000 \text { per month } \\\text { Advertising expense } & \$ 70,000 \text { per month } \\\text { Shipping expense } & 2 \% \text { of sales } \\\text { Miscellaneous selling expense } & \$ 2,500 \text { per month plus } 1 / 2 \% \text { of sales }\end{array}

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