Prepare a monthly flexible budget

Assignment Help Managerial Accounting

Reference no: EM131021001

Exercise

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, depredation 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.)

Reference no: EM131021001

Questions Cloud

Olympic sports has two issues of debt outstanding : Olympic Sports has two issues of debt outstanding. One is a 7% coupon bond with a face value of $37 million, a maturity of 10 years, and a yield to maturity of 8%. The coupons are paid annually. The other bond issue has a maturity of 15 years, with c..

About the percentage cost of the preferred stock : Pangbourne Whitchurch has preferred stock outstanding. The stock pays a dividend of $3 per share, and sells for $30. What is the percentage cost of the preferred stock? (Enter your answer as a whole percent.)

Cost of equity if the debt-to-equity ratio were zero : A firm has a debt-to-equity ratio of 1. Its cost of equity is 16 percent and its pretax cost of debt is 8 percent. If there are no taxes or other imperfections, what would be its cost of equity if the debt-to-equity ratio were zero?

What is days sales outstanding-average amount of receivables : Snider Industries sells on terms of 3/10, net 20. Total sales for the year are $1,724,500. Thirty percent of the customers pay on the 10th day and take discounts; the other 70% pay, on average, 68 days after their purchases. What is the days sales ou..

Prepare a monthly flexible budget : Prepare a monthly flexible budget for each $11,300 increment of sales within the relevant range for the year ending December 31, 2014

The project requires an initial acquisition cost : A domestic firm is considering a 8-year project. The project requires an initial acquisition cost of $2 mil and needs additional installation cost of $0.2 mil at the beginning of the project. Determine whether you will accept or reject this project u..

Why is limited liability more important for firms : Why is limited liability more important for firms trying to raise funds from a large number of investors than for firms trying to raise funds from a small number of investors?

Considering buying stock : You are considering buying stock in Biqing, Inc., a West Texas company that provides PPO medical services. The dividend just paid (i.e., D0) was $1.00 and is expected to increase by 20% per year for two years. If you require a 15% rate of return, wha..

What is the length of the firms cash conversion cycle : Negus Enterprises has an inventory conversion period of 73 days, an average collection period of 49 days, and a payables deferral period of 20 days. Assume that cost of goods sold is 80% of sales. What is the length of the firm's cash conversion cycl..

User Account

All Pages