Assume the following information for a merchandising company:

Sales	$ 500,000
Variable selling expenses	$ 25,000
Gross margin	$ 150,000
Fixed administrative expenses	$ ?
Fixed selling expenses	$ 40,000
Variable administrative expenses	$ 5,000

What is the amount of total variable expenses?

Multiple Choice

$350,000

$370,000

$380,000

$360,000