1. The Year 1 selling expense budget for Zap Corporation is as follows:

   Budgeted sales	$550,000
   Selling costs:

   	Delivery expenses	$ 5,500
   	Commission expenses	11,000
   	Advertising expenses	5,000
   	Office expenses	3,000
   	Miscellaneous expenses	6,950

   Total

   $ 31,450

   Delivery and commission expenses vary proportionally with budgeted sales in dollars. Advertising and office expenses are fixed. Miscellaneous expenses include $2,000 of fixed costs. The rest varies with budgeted sales in dollars. The budgeted sales for Year 2 are $660,000. What will be the value of miscellaneous expenses in the Year 2 selling expense budget?

   	A.	$7,940
   	B.	$6,200
   	C.	$4,200
   	D.	$3,600