Flexible Budget for Selling and Administrative Expenses Cloud Productivity Inc. uses flexible budgets that are based on the following data: Sales commissions 14% of sales Advertising expense 18% of sales Miscellaneous administrative expense $6,500 per month plus 12% of sales office salaries expense $28,000 per month Customer support expenses $12,000 per month plus 20% of sales Research and development expense $30,000 per month Prepare a flexible selling and administrative expenses budget for March 2016 for sales volumes of $400,000, $500,000, and $600,000. Enter all amounts as positive numbers. Cloud Productivity Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending March 31, 2016 Total sales Variable cost: Sales commissio $400,000 $500,000 $600,000 4
Flexible Budget for Selling and Administrative Expenses Cloud Productivity Inc. uses flexible budgets that are based on the following data: Sales commissions 14% of sales Advertising expense 18% of sales Miscellaneous administrative expense $6,500 per month plus 12% of sales office salaries expense $28,000 per month Customer support expenses $12,000 per month plus 20% of sales Research and development expense $30,000 per month Prepare a flexible selling and administrative expenses budget for March 2016 for sales volumes of $400,000, $500,000, and $600,000. Enter all amounts as positive numbers. Cloud Productivity Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending March 31, 2016 Total sales Variable cost: Sales commissio $400,000 $500,000 $600,000 4
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
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Transcribed Image Text:Flexible Budget for Selling and Administrative Expenses
Cloud Productivity Inc. uses flexible budgets that are based on the following data:
Sales commissions
14% of sales
Advertising expense
18% of sales
Miscellaneous administrative expense
$6,500 per month plus 12% of sales
Office salaries expense
$28,000 per month
Customer support expenses
$12,000 per month plus 20% of sales
Research and development expense
$30,000 per month
Prepare a flexible selling and administrative expenses budget for March 2016 for sales volumes of $400,000, $500,000, and $600,000. Enter all
amounts as positive numbers.
Cloud Productivity Inc.
Flexible Selling and Administrative Expenses Budget
For the Month Ending March 31, 2016
Total sales
Variable cost:
Sales commissions
Advertising expense
Miscellaneous administrative expense
Customer support expense
Total variable cost
Fixed cost
$400,000 $500,000 $600,000
4
Transcribed Image Text:Research and development expense
$30,000 per month
Prepare a flexible selling and administrative expenses budget for March 2016 for sales volumes of $400,000, $500,000, and $600,000. Enter all
amounts as positive numbers.
Cloud Productivity Inc.
Flexible Selling and Administrative Expenses Budget
For the Month Ending March 31, 2016
Total sales
Variable cost:
Sales commissions
Advertising expense
Miscellaneous administrative expense
Customer support expense
Total variable cost
Fixed cost:
Miscellaneous administrative expense
Office salaries expense
Customer support expense
Research and development expense
Total fixed cost
Total selling and administrative expenses
I
$400,000 $500,000 $600,000
J
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