5. Selling, general, and administrative costs include the following: a. $12,600 for a health care insurance premium covering the second and third quarters of the current year. b. Contract research...

5. Selling, general, and administrative costs include the following:

a. $12,600 for a health care insurance premium covering the second and third quarters of the current year.

b. Contract research costs of $21,000 covering a project that is expected to benefit the company through mid-2016.

c. $6,700 representing the annual budget for expenses related to a sales convention that management may attend.