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Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions 7% of sales Advertising expense 17% of sales Miscellaneous administrative expense $12,000 per month plus 6% of sales Office salaries expense $55,000 per month Customer support expenses $25,000 per month plus 32% of sales Research and development expense $79,000 per month This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $900,000, and $1,100,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers. Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 Total sales $400,000 $900,000 $1,100,000 Variable cost: Sales commissions $fill in the blank 3 28,000 $fill in the blank 4 63,000 $fill in the blank 5 77,000 Advertising expense fill in the blank 7 68,000 fill in the blank 8 153,000 fill in the blank 9 187,000 Miscellaneous administrative expense fill in the blank 11 fill in the blank 12 fill in the blank 13 Customer support expenses fill in the blank 15 fill in the blank 16 fill in the blank 17 Total variable cost $fill in the blank 18 $fill in the blank 19 $fill in the blank 20 Fixed cost: Miscellaneous administrative expense $fill in the blank 22 $fill in the blank 23 $fill in the blank 24 Office salaries expense fill in the blank 26 fill in the blank 27 fill in the blank 28 Customer support expenses fill in the blank 30 fill in the blank 31 fill in the blank 32 Research and development expense fill in the blank 34 fill in the blank 35 fill in the blank 36 Total fixed cost $fill in the blank 37 $fill in the blank 38 $fill in the blank 39 Total selling and administrative expenses $fill in the blank 40 $fill in the blank 41 $fill in the blank 42

Sales commissions 7% of sales 17% of sales % Advertising expense Miscellaneous administrative expense $12,000 per month plus 6% of sales Office salaries expense $55,000 per month Customer support expenses $25,000 per month plus 32% of sales Research and development expense $79,000 per month This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. X Open spreadsheet Prepare a flexible selling and administrative expenses budget for October for sales volumes of $400,000, $900,000, and $1,100,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers. Digital Solutions Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending October 31 $400,000 $900,000 $1,100,000 Total sales Variable cost: Sales commissions 28,000 63,000 $ 77,000 68,000 153,000 187,000 Advertising expense Miscellaneous administrative expense Customer support expenses Total variable cost $ $1 Fixed cost: Miscellaneous administrative expense $ $ Office salaries expense Customer support expenses Research and development expense Total fixed cost Fixed cost: Miscellaneous administrative expense I III Office salaries expense Customer support expenses Research and development expense Total fixed cost Total selling and administrative expenses

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