Whistle Works manufacturers safety whistle keychains. They have the following information available to prepare their master budget:

Operating Expenses

Variable Operating Costs $.75 per unit sold

Fixed Operating Costs $475,000

Other Info:

Units produced in 2016 42,000

Units sold in 2016 40,500

Whistle Works sells each whistle for $12. It's been determined that each unit costs $7.25 to manufacture. How much is total budgeted operating expenses for the year ended 2016?

A 506500

B 475000

C 61875

D 505375