DeWitt Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $174,200 to $208,100. Variable costs and their percentage relationship to sales are sales commissions 8%, advertising 5%, traveling 4%, and delivery 1%. Fixed selling expenses will consist of sales salaries $35,384, depreciation on delivery equipment $6,878, and insurance on delivery equipment $1,299.
Prepare a monthly flexible budget for each $11,300 increment of sales within the relevant range for the year ending December 31, 2014.(List variable costs before fixed costs.)
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