Biology Forums - Study Force

Scotch, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $50,000 in January, $60,000 in February, and $70,000 in March. Variable and fixed expenses are as follows:

Variable Expenses:
Power cost (20% of sales)
Miscellaneous expenses: (5% of sales)
Fixed Expenses:
Salaries expense: $8,000 per month
Rent expense: $5,000 per month
Depreciation expense: $1,400 per month
Power cost/fixed portion: $500 per month
Miscellaneous expenses/fixed portion: $1,000 per month

Using the information above, calculate the amount of selling and administrative expenses for the month of February.
A) $33,400
B) $30,900
C) $15,000
D) $28,400

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Thanks!