Kapital Ltd Has Prepared the Operating Budget for the First

Multiple Choice

Kapital Ltd has prepared the operating budget for the first quarter of 2017.The company forecasts sales of $50,000 in January,$60,000 in February and $70,000 in March.Variable and fixed expenses are as follows:
Variable: electricity cost (40% of sales)
Miscellaneous expenses: (10% of sales)
Fixed: salary expense: $8000 per month
Rent expense: $4000 per month
Depreciation expense: $1200 per month
Electricity cost/fixed portion: $800 per month
Miscellaneous expenses/fixed portion: $1200 per month
Calculate total operating expenses for the month of January.

A) $40,200
B) $25,000
C) $50,200
D) $45,200