Daybreak Technologies Inc. uses flexible budgets that are based on the following data: Sales commissions 9% of sales Advertising expense 15% of sales Miscellaneous administrative expense $1,450 per month plus 3% of sales Office salaries expense $14,000 per month Customer support expenses $2,050 plus 4% of sales Research and development expense $4,500 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $90,000, $115,000, and $135,000. Daybreak Technologies Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending April 30 Total sales $90,000 $115,000 $135,000 Variable cost: Sales commissions 8,100 10,350 12,150 Advertising expense 13,500 17,250 20,250 Miscellaneous administrative expense 2,700 3,450 4,050 Customer support expenses 3,600 4,600 5,400 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
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![Daybreak Technologies Inc. uses flexible budgets that are based on the following data:
Sales commissions
9% of sales
Advertising expense
15% of sales
Miscellaneous administrative expense
$1,450 per month plus 3% of sales
Office salaries expense
$14,000 per month
Customer support expenses
$2,050 plus 4% of sales
Research and development expense
$4,500 per month
Prepare a flexible selling and administrative expenses budget for April for sales volumes of $90,000, $115,000, and $135,000.
Daybreak Technologies Inc.
Flexible Selling and Administrative Expenses Budget
For the Month Ending April 30
Total sales
$90,000
$115,000
$135,000
Variable cost:
Sales commissions
8,100
10,350
12,150
Advertising expense
13,500
17,250
20,250
Miscellaneous administrative expense
2,700
3,450
4,050
Customer support expenses
3,600
4,600
5,400
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F28fabc4d-b065-423c-b1c7-22c07f48d839%2Fc48f22a1-1c46-4a11-bc35-f4fa3d09f2e4%2Fu95omc_processed.png&w=3840&q=75)
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