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Warshaw Company budgets payroll at $3,400 per month plus a percentage of monthly sales. The June operating expenses budget includes total payroll of $9,800 with

Warshaw Company budgets payroll at

$3,400

per month plus a percentage of monthly sales. The June operating expenses budget includes total payroll of

$9,800

with budgeted sales of

$160,000.

Sales for July are budgeted at

$140,000

while purchases of inventory for July are budgeted at

$920,000.

Depreciation and insurance for July are estimated at

$800

and

$800?,

respectively. Office and administrative expenses related to purchasing inventory are budgeted at

10?%

of purchases for the month. The purchase of

$2,400

in equipment and

$1,100

in furniture is expected in July.If the percentage of monthly sales used in budgeting payroll increases

25?%,

what would the total payroll budgeted for July? be?

A.

$ 7 comma 000$7,000

B.

$ 10 comma 400$10,400

C.

$9,000

D.

$ 5600

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