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

$123,400.

$131,250.

$113,400.

$128,400.