In: Accounting
Fallon Company uses flexible budgets to control its selling
expenses. Monthly sales are expected to range from $169,900 to
$211,000. Variable costs and their percentage relationship to sales
are sales commissions 7%, advertising 4%, travel 4%, and delivery
1%. Fixed selling expenses will consist of sales salaries $34,700,
depreciation on delivery equipment $7,500, and insurance on
delivery equipment $1,900.
Prepare a monthly selling expense flexible budget for each $13,700
increment of sales within the relevant range for the year ending
December 31, 2020.