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I give thumbs up Pet Food Company budgets payroll at $3,500 per month plus a percentage of monthly sales. The June operating expenses budget includes

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Pet Food Company budgets payroll at $3,500 per month plus a percentage of monthly sales. The June operating expenses budget includes total payroil of $13,700 with budgeted sales of $170,000. Sales for July are budgeted at $100,000 while purchanes of inventory for July are budgeted at $990,000. Depreciation and insurance for July are estimated at $600 and $800, respectively. Office and administrative expenses related to purchasing inventory are budgeted at 5% of purchases for the month. The purchase of $2,900 in equipment and $1,700 in furniture is expected in July. The July payroll should be budgeted at A. $13,618 B. $13,700 C. $6,000 D. $9,500

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