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Warshaw Company budgets payroll at $3000 per month plus a percentage of monthly sales. The June operating expenses budget includes total payroll of $12,600 with

Warshaw Company budgets payroll at $3000 per month plus a percentage of monthly sales. The June operating expenses budget includes total payroll of $12,600 with budgeted sales of $160,000. Sales for July are budgeted at $100,000 while purchases of inventory for July are budgeted at $1,000,000. Depreciation and insurance for July are estimated at $600 and $900, respectively. Office and administrative expenses related to purchasing inventory are budgeted at 10% of purchases for the month. The purchase of $2800 in equipment and $1100 in furniture is expected in July.

If the percentage of monthly sales used in budgeting payroll increases 15%, what would the total payroll budgeted for July be?

A) $6000

B) $9900

C) $6900

D) $9000

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