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

Sales	$	380,000
Freight out	$	0.25	per unit sold
Depreciation on Admin. Equipment	$	16,000
Sales & Admin. Salaries	$	47,200	+2% of sales
Advertising	$	18,000
Depreciation on Manuf. Equip.	$	21,000
Lease on Sales Building	$	47,400
Miscellaneous Selling Expenses	$	6,200

Based on January sales of 26,000, the amount of HDC's expected cash outflow for selling and administrative expenses would be

Multiple Choice

• $148,900.

• $150,750.

• $132,900.

• $153,900.