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Lapp Manufacturing Uses Flexible Budgets to Control Its Selling Expenses

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Essay

Lapp Manufacturing uses flexible budgets to control its selling expenses. Monthly sales are expected to be from $400000 to $480000. Variable costs and their percentage relationships to sales are:  Sales commissions 6% Advertising 4% Traveling 5% Delivery 1%\begin{array} { l l } \text { Sales commissions } & 6 \% \\\text { Advertising } & 4 \% \\\text { Traveling } & 5 \% \\\text { Delivery } & 1 \%\end{array} Fixed selling expenses consist of sales salaries $80000 and depreciation on delivery equipment $20000.
Instructions
Prepare a flexible budget for increments of $40000 of sales within the relevant range.


Definitions:

Monitoring

Involves the continual oversight of activities, processes, or systems to ensure they are functioning correctly and achieving desired outcomes.

Business Goals

The objectives that a company aims to achieve, which guide its strategic planning and operational activities.

Compliance

Adherence to laws, regulations, guidelines, and specifications relevant to business operations.

Vulnerabilities

Weaknesses or flaws in a system that can be exploited by threats to gain unauthorized access or cause harm.

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