Last year, Jen and Berry Inc. had sales of $50,000, cost of goods sold (COGS) of 12,000, depreciation charge of $3,000 and selling, general and administrative (SG&A) cost of $10,000. The interest costs were $2,500. Tewnty-five percent of SG&A costs are fixed costs. If its sales are expected to be $60,000 this year, what will be the estimated SG&A costs this year?

A.

$10,636

B.

$11,500

C.

$12,667

D.

$12,000

E.

$13,250

F.

$14,250