Warshaw Company is preparing the June Budget.

The June budget includes the following data:

Sales $100,000

Purchases of Merchandise $95,000

Depreciation $2965

Insurance $10858

Payroll expenses $5416 a month plus 2% of sales

Administrative office expenses incurred to order purchases are budgeted at 6% of purchases of merchandise only

Purchase of equipment $4834

Research and Development 6% of sales

What is total operating expense for June?

please explain?