The operating expense budget of MountainTop Creations is comprised of the following budget formulas for its fixed and variable selling and administrative expense items:Selling expenses: $288,000 per year + $18 per unitAdministrative expenses: $552,000 per year + 2% of salesIf MountainTop's sales budget includes sales of 5,000 units each month at a price $50 per unit, the budgeted selling expense for August would be:
A. $378,000.
B. $293,000.
C. $29,000.
D. $114,000.
Answer: D
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