Problem:

The Year 1 selling expense budget for Karin Corporation is as follows: Budget Sales, $2,500,000. Selling Costs: Delivery Expenses, $25,000. Commission Expenses, $75,000. Advertising Expenses, $20,000. Office Expenses, $12,000. Miscellaneous Expenses, $30,000. Total: $162,000. Delivery and commission expenses vary proportionally with budgeted sales in dollars. Advertising and office expenses are fixed. Miscellaneous expenses include $10,000 of fixed costs. The rest varies with budgeted sales in dollars. The Year 2 budgeted sales is $3,400,000.

Required:

Question: What will be the value for commission expenses in the Year 2 selling expense budget?

Note: Please show the work not just the answer.