1. Xing, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $40,000 in January, $50,000 in February, and $60,000 in March. Variable and fixed expenses are as follows: Variable Expenses: Power cost (40% of sales) Miscellaneous expenses: (15% of sales) Fixed Expenses: Salaries expense: $6000 per month Rent expense: $5000 per month Depreciation expense: $1400 per month Power cost/fixed portion: $600 per month Miscellaneous expenses/fixed portion: $1200 per month Calculate the amount of budgeted selling and administrative expenses for February.

Select one:

A.

$41,700

B.

$36,200

C.

$47,200

D.

$27,500