Sales projections for 2021 are as follows:

Q1 - 600 units

Q2 - 650 units

Q3 - 720 units

Q4 - 800 units

Variable selling and administrative expenses are estimated to be $2.50 per unit. Fixed selling and administrative expenses are $1,400 per quarter, including $300 of depreciation. What are cash disbursements for selling and administrative expenses for Q2?

• A.

  $2,725

• B.

  $2,600

• C.

  $525

• D.

  $3,025