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?

		$61,875
		$505,375
		$506,500
		$475,000