10-5 DeWitt Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from$170,000 to $200,000 Variable costs and their percentage relationship to sales are:
Sales commissions

6%
Advertising

4%
Traveling

3%
Delivery

2%

Fixed selling expenses will consist of:

Sales salaries

$35,000

Depreciation on delivery equipment

7,000

Insurance on delivery equipment

1,000

Instructions
Prepare a monthly flexible budget for each $10,000 increment of sales within the relevant range for the year ending December 31, 2014.

 

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