The actual selling expenses incurred in march 2017 by fallon company are as follows.
variable expenses fixed expenses
sales commissions $14,178 sales salaries $35,000
advertising 10,036 depreciation 7,200
travel 8,305 insurance 1,300
delivery 3,382
(a) prepare a flexible budget performance report for march, assuming that march sales were $166,100. variable costs and their percentage relationship to sales are sales commissions 8%, advertising 6%, traveling 5%, and delivery 2%. fixed selling expenses will consist of sales salaries $35,000, depreciation on delivery equipment $7,200, and insurance on delivery equipment $1,300. (list variable costs before fixed costs.)

The flexible budget performance report gives Net Income of $87,719 for the month of march 2017.

Explanation:

                              March 2017

Sales Revenue          $166,100  

Less: Variable Expenses

Sales Commission  $13,288        (=Sales Revenue x 8%)

Advertising                   $9,966        (=Sales Revenue x 6%)

Travel                          $8,305        (=Sales Revenue x 5%)

Delivery                          $3,322        (=Sales Revenue x 2%)

Contribution                    $131,219    (=Sales Revenue - Variable Expenses)

Less: Fixed Expenses

Sales Salaries          $35,000  

Depreciation                   $7,200  

Insurance                   $1,300  

Net Income                   $87,719    (=Contribution - Fixed Expenses)

*Excel file is attached for your reference.

c is the answer, and do you have a ps4?

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