The Prattle Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available:

	Monthly Fixed Cost	Variable Cost Per Deb Sold
Sales commissions		$0.82
Shipping		$1.24
Advertising	$48,500	$0.32
Executive salaries	$69,500
Depreciation on office equipment	$21,800
Other	$31,000

All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the company has budgeted to sell 29,000 Debs in January, then the total budgeted variable selling and administrative expenses for January will be:

A $59,740

B $69,020

C $33,060

D $45,240

___________________

May Corporation, a merchandising firm, has budgeted sales as follows for the third quarter of the year:

July	$98,600
August	$92,000
September	$89,000

Cost of goods sold is equal to 70% of sales. The company wants to maintain a monthly ending inventory equal to 120% of the Cost of Goods Sold for the following month. The inventory on June 30 is less than this ideal since it is only $80,224. The company is now preparing a Merchandise Purchases Budget. The budgeted purchases for July are:

a. $69,020

b. $66,076

c. $50,476

d. $94,076