Overview
Coltron Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $170,000 to $200,000. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 4%, travel 3%, and delivery 2%. Fixed selling expenses will consist of sales salaries of $35,000, depreciation on delivery equipment of $7,000, and insurance on delivery equipment of $1,000.Use the Expense Budget Spreadsheet on the tab labeled Student Worksheet and complete the two months of November and December.
Calculate the flexible budget revenue for each 10% increment of sales within the relevant range for the year ending December 31, 2027, beginning in September and ending in December. The first month has been calculated for you.
Enter the sales revenue in the yellow shaded cells (I7, J7, N7, I20-23, J20-23, N20-23) and the fixed costs for each of the two highlighted months and the Break-Even column. The spreadsheet will auto-calculate once revenue and fixed costs are entered.
Submit your completed worksheet.