The International Company makes and sells only one product, Product SW. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available: Variable Cost Monthly Fixed Per Unit Sold Cost Sales commissions $0.70 Shipping $1.10 Advertising $0.20 $14,000 Executive salaries $34,000 Depreciation on office equipment $11,000 Other $0.25 $19,000 All expenses other than depreciation are paid in cash in the month they are incurred. If the company has budgeted to sell 20,000 units of Product SW in October, then the total budgeted variable selling and administrative expenses for October will be: $78,000. O $40,000. $56,250. O $45,000. Justin's Plant Store, a retailer, started operations on January 1. On that date, the only assets were $16,000 in cash and $3,500 in merchandise inventory. For purposes of budget preparation, assume that the company's cost of goods sold is 60% of sales. Expected sales for the first four months appear below. January February March April Expected Sales $10,000 24,000 16,000 25,000 The company desires that the merchandise inventory on hand at the end of each month be equal to 50% of the next month's merchandise sales (stated at cost). All purchases of merchandise inventory must be paid in the month of purchase. Sixty percent of all sales should be for cash; the balance will be on credit. Seventy-five percent of the credit sales should be collected in the month following the month of sale, with the balance collected in the following month. Variable operating expenses should be 10% of sales and fixed expenses (all depreciation) should be $3,000 per month. Cash payments for the variable operating expenses are made during the month the expenses are incurred. The accounts receivable balance that would appear in the March 31 budgeted balance sheet would be: $16,000. O $12,400. O $15,000. O $8,800. 4