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Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range...

Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $171,100 to $205,300. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 5%, traveling 3%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,300, depreciation on delivery equipment $7,400, and insurance on delivery equipment $1,500.

Prepare a monthly flexible budget for each $11,400 increment of sales within the relevant range for the year ending December 31, 2017

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Prepare a monthly flexible budget for each $11,400 increment of sales within the relevant range for the year ending December 31, 2017

Sales 171100 182500 193900 205300
Variable cost
Commission 10266 10950 11634 12318
Advertising 8555 9125 9695 10265
Travelling 5133 5475 5817 6159
Delivery 3422 3650 3878 4106
Total variable cost 27376 29200 31024 32848
Fixed cost
Sales salaries 35300 35300 35300 35300
depreciation on delivery equipment 7400 7400 7400 7400
insurance on delivery equipment 1500 1500 1500 1500
Total fixed cost 44200 44200 44200 44200
Total cost 71576 73400 75224 77048
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