The following budget information is available for the HD Sales Company (HDC) 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

All operating expenses are paid in cash in the month incurred.If HDC expects to sell 20,000 units of inventory, the total budgeted selling and administrative expenses would be what amount on the January pro forma income statement?

a. $123,400 b. $138,400 c. $113,400 d. $293,400