Scotch, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $45,000 in January, $55,000 in February, and $65,000 in March. Variable and fixed expenses are as follows:

Variable Expenses:

Power cost (40% of sales)

Miscellaneous expenses: (15% of sales)

Fixed Expenses:

Salaries expense: $10,000 per month

Rent expense: $5,000 per month

Depreciation expense: $1,200 per month

Power cost/fixed portion: $800 per month

Miscellaneous expenses/fixed portion: $1,200 per month

Using the information above, calculate the amount of selling and administrative expenses for the month of February (show all work).

(a) $42,920

(b) $53,950

(c) $30,250

(d) $48,450