HighlandCompany has the following information:

MonthBudgeted Sales

January$70,000

February75,000

March82,000

April89,000

Budgeted Operating ExpensesPerMonth

Wages$20,000

Advertising10,000

Depreciation5,000

Other expenses3% of sales

All cash expenses are paid as incurred. What are the total operating expenses budgeted for the month ofFebruary?

A) $30,000

B) $35,040

C) $37,250

D) $38,200