Question

Morningside Technologies Inc. uses flexible An accounting device used to plan and control resources of operational departments and divisions.budgets that are based on the following data:

Sales commissions	6% of sales
Advertising expense	23% of sales
Miscellaneous administrative expense	$1,300 per month plus 1% of sales
Office salaries expense	$12,000 per month
Customer support expenses	$1,800 plus 2% of sales
Research and development expense	2,400 per month

Prepare a flexible selling and administrative expenses budget for April for sales volumes of $80,000, $100,000, and $120,000. Enter all amounts as positive numbers.

Morningside Technologies Inc.
Flexible Selling and Administrative Expenses Budget
For the Month Ending April 30
Total sales	$80,000	$100,000	$120,000
Variable cost:
Sales commissions	$	$	$
Advertising expense
Miscellaneous administrative expense
Customer support expenses
Total variable cost	$	$	$
Fixed cost:
Miscellaneous administrative expense	$	$	$
Office salaries expense
Customer support expenses
Research and development expense
Total fixed cost	$	$	$
Total selling and administrative expenses	$	$	$

Answer 1

		Flexible selling and administrative expense budget
	Total sales			a	80000	100000	120000
	Variable cost:
	Sales commissions		(6% of sales)	a*6%	4800	6000	7200
	Advertising expense		(23% of sales)	a*23%	18400	23000	27600
	Miscellaneous administrative expenses		(1% of sales)	a*1%	800	1000	1200
	Customer support expenses		(2% of sales)	a*2%	1600	2000	2400
	Total variable cost			a	25600	32000	38400
	Fixed cost:
	Miscellaneous administrative expenses				1300	1300	1300
	Office salaries expense				12000	12000	12000
	Customer support expenses				1800	1800	1800
	Research and development expense				2400	2400	2400
	Total fixed cost			b	17500	17500	17500
	Total selling and administrative expense			a+b	43100	49500	55900