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Karma Company has prepared its operating budget for the first quarter of 2 0 x 9 . The company forecasts sales of $ 5 0

Karma Company has prepared its operating budget for the first quarter of 20x9. The company forecasts sales of $50,000 in February, $60,000 in March, and $70,000 in April. Variable and fixed expenses are as follows:
Variable:
Utilities (electricity): 40% of sales
Miscellaneous expenses: 5% of sales
Fixed:
Salary expense $ 8,000 per month
Rent expense $ 5,000 per month
Depreciation expense $ 1,200 per month
Utilities expense (fixed part) $ 800 per month
Miscellaneous expense (fixed part) $ 1,000 per month
What are the total selling and administrative expenses for the month of February?
Group of answer choices
$41,700
$43,000
$38,500
None of these amounts is correct
$47,500

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