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E10-5 DeWitt Company uses flexible

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DeWitt 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%, 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.

Prepare a monthly flexible budget for each $10,000 increment of sales within the relevant
range for the year ending December 31, 2014.

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