He following budget information is available for the HD Sales Company for January:
|
|
|
|
|
|
Sales
|
$
|
320,000
|
|
|
Freight out
|
$
|
.25
|
per unit sold
|
|
Depreciation on Admin. Equipment
|
$
|
10,000
|
|
|
Sales & Admin. Salaries
|
$
|
40,000
|
+2% of sales
|
|
Advertising
|
$
|
12,000
|
|
|
Depreciation on Manuf. Equip.
|
$
|
15,000
|
|
|
Lease on Sales Building
|
$
|
45,000
|
|
|
Miscellaneous Selling Expenses
|
$
|
5,000
|
|
|
|
Based on January sales of 20,000, the amount of HDC's expected cash outflow for selling and administrative expenses would be.
a. $123,400.
b. $131,250.
c. $113,400.
d. $128,400.