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Harvard Company budgets July wages expenses as $16,400. Depreciation for July is estimated at $1,600, respectively. Administrative expenses related to purchasing inventory are budgeted at 10% of purchases for the month. Purchases of inventory for July are budgeted at $95,000. The purchase of $2,500 in equipment and $1,500 in furniture is expected in July. The total operating expenses budgeted for July are

Select one:

a. $27,500.

b. $26,500.

c. $31,500.

d. $25,900.