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The operating expense budget of MountainTop Creations is comprised of the following budget formulas for its fixed and variable selling and administrative expense items: Selling

The operating expense budget of MountainTop Creations is comprised of the following budget formulas for its fixed and variable selling and administrative expense items:

Selling expenses: $288,000 per year + $18 per unit

Administrative expenses: $552,000 per year + 2% of sales

If MountainTops sales budget includes sales of 5,000 units each month at a price $50 per unit, the budgeted selling expense for August would be:

Multiple Choice

A) $29,000.

B) $114,000.

C) $293,000.

D) $378,000.

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