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Case 1 A Saudi Company uses flexible budgets to control its selling expenses. Monthly sales...

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Accounting

Case 1 A Saudi Company uses flexible budgets to control its selling expenses. Monthly sales units are expected to be from 20,000 to 24,000 (selling price SR10). Variable costs and their percentage relationships to sales are: Sales commissions 6% Advertising 4% Traveling 5% Delivery 1% Fixed selling expenses consist of sales salaries SR40,000 and depreciation on delivery equipment SR10,000. Required Prepare a flexible budget for increments of 2,000 of sales units within the relevant range (1 mark).

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