What is the budgeted fixed operating expense for January 20X4?

(Use the following data to answer this question.)

Question 24 options:

A)

$22,000

B)

$14,500

C)

$6,000

D)

$12,500

20X4 ANNUAL BUDGET AMOUNT PERCENT 100 EARNINGS $1,000,000 COST OF CONSTRUCTION 250,000 LABOR 25 MATERIALS 450,000 45 50,000 SUBCONTRACT 750,000 TOTAL DIRECT COST 75 250,000 GROSS MARGIN 25 VARIABLE OPER. EXPENSE 20,000 AUTO AND TRUCK 3 30,000 INDIRECT LABOR 50,000 TOTAL VARIABLE OPER. EXP FIXED OPER. EXPENSE 12,000 DEPRECIATION 99,600 RENT OTHER 38,400 150,000 TOTAL FIXED OPER. EXPENSE 200,000 TOTAL OPER. EXPENSE $50,000 NET PROFIT OTHER DATA: Projected Sales First Quarter: January 4%; February 5%; March 6%