Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $200,000. Variable costs and their percentage relationship to seals are sales commissions 6%, advertising 4%, traveling 3%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,000, depreciation on delivery equipment $7,000, and insurance on delivery equipment $1,000.
Solutions is absolutely free. If you need the solution, just contact us.