Use the Information Below to Answer the Following Question(s)

question 87

Multiple Choice

Use the information below to answer the following question(s) .
Bigelow Company budgets payroll at $4,000 per month plus a percentage of monthly sales. The June operating expense budget includes total payroll of $12,000 with budgeted sales of $160,000. Sales for July are budgeted at $180,000 while purchases of inventory for July are budgeted at $95,000. Depreciation and insurance for July are estimated at $1,000 and $600, respectively. Office and administrative expenses related to purchasing inventory are budgeted at 10% of purchases for the month. The purchase of $2,500 in equipment and $1,500 in furniture is expected in July.
-The total operating expenses at Bigelow Company budgeted for July are

• A) $13,000
• B) $13,600
• C) $22,500
• D) $24,100

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Definitions:

Movie Rentals

The business of lending out films for a limited period, traditionally through physical media like DVDs, now predominantly through digital services.

Decrease

A reduction or decline in size, quantity, or intensity.

Quantity Supplied

The amount of a product that producers are willing and able to sell at a given price over a specific period.

Price of Lamps

The cost consumers pay for lamps, which can vary based on factors like design, brand, materials, and production costs.