The Following Budget Information Is Available for Crescent Company for January

The following budget information is available for Crescent Company for January 2014: $$\begin{array} { | l | r | } \hline \text { Sales } & \$ 800,000 \\\hline \text { Cost of goods sold } & 540,000 \\\hline \text { Freight out } & 2,500 \\\hline \text { Administrative salaries } & 100,000 \\\hline \text { Sales commissions } & 5 \% \text { of sales } \\\hline \text { Advertising } & 20,000 \\\hline \text { Depreciation on store equipment } & 50,000 \\\hline \text { Rent on administration building } & 60,000 \\\hline \text { Miscellaneous administrative expenses } & 10,000 \\\hline \text { Percentage of sales on credit } & 80 \%\\\hline \end{array}$$ All operating expenses are paid in cash in the month incurred. The amount of expected cash outflow for selling and administrative expenses would be:

A) $262,500.
B) $247,50.
C) $232,500.
D) $312,500.