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enyata [817]
3 years ago
5

Martinez Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $166,900 to $19

8,400. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 5%, traveling 4%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,300, depreciation on delivery equipment $6,600, and insurance on delivery equipment $1,000.
Prepare a monthly flexible budget for each $11,100 increment of sales within the relevant range for the year ending December 31, 2017.
Business
1 answer:
kolezko [41]3 years ago
4 0

Answer:

<u>monthly flexible budget for each $11,100 increment </u>

Sales                                                               $11,100

Less Sales Commissions ( $11,100 × 6%)       ($666)

Net Sales                                                       $10,434

advertising ( $11,100 × 5%)                              ($555)

traveling ( $11,100 × 4%)                                  ($444)

delivery ( $11,100 × 2%)                                   ($222)

Net Income                                                     $9,213

Explanation:

Consider Only the incremental costs and revenues.Fixed costs are not relevant for the $11,100 increment

<u />

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