The following budget information is available for the HD Sales Company for January:

Sales	$	320,000
Freight out	$	.25	per unit sold
Depreciation on Admin. Equipment	$	10,000
Sales & Admin. Salaries	$	40,000	+2% of sales
Advertising	$	12,000
Depreciation on Manuf. Equip.	$	15,000
Lease on Sales Building	$	45,000
Miscellaneous Selling Expenses	$	5,000

Based on January sales of 20,000, the amount of HDC's expected cash outflow for selling and administrative expenses would be

a. $123,400.

b. $131,250.

c. $113,400.

d. $128,400.

Note: I've gone over this problem, and the answer is not a. 123, 400; so I'm lost about what I'm not adding up correctly. Thanks!