Respuesta :
Answer:
Sales volumes $300,000 $350,000 $400,000
Total selling expenses $541,500 $595,750 $650,000
Explanation:
Basically, a flexible budget can be described as a budget that adjusts with changes in volume or activity.
Therefore, monthly flexible selling expense budget for Cottonwood Company which adjusts with sales volumes can be prepared as follows:
Cottonwood Company
Monthly Flexible Selling Expense Budget
For the Month .....
Details $ $ $
Sales volumes 300,000 350,000 400,000
Variable selling expenses:
Sales comm. (6% of sales) 18,000 21,000 24,000
Shipping exp. (1% of sales) 3,000 3,500 4,000
Misc. selling exp. (1.5% of sales) 4,500 5,250 6,000
Fixed selling expenses:
Sales manager's salary 120,000 120,000 120,000
Advertising expense 90,000 90,000 90,000
Misc. selling expense 6,000 6,000 6,000
Total selling expenses 541,500 595,750 650,000
