Speedy Runner makes running shoes and they are anticipating the incurrence of the following operating expenses during the upcoming year:

	Cost
Sales commission	$3 per pair of shoes sold
Salaries	$580,000
Shipping expenses	$6.00 per pair of shoes sold
Bad debt expense	1.5% of sales revenue
Depreciation on sales vehicles	$27,000
Advertising	$24,500

Speedy Runner plans to sell

122,000

pairs of shoes at $100 per pair. What will Speedy Runner budget for cash disbursements related to operating expenses?

A.

$1,851,500

B.

$580,000

C.

$1,729,500

D.

$ 1,702,500