A 2-7X or 1-4X on the low powers is just as fast as a red dot up close without the downsides. The 2-7X Redfield is a good choice. This would work well enough to 60 yards and is around 8 oz.
http://swfa.com/Leupold-1-4x20-VX-1-...pe-P51851.aspx if you are trying to go light. No reason to spend much more for the recoil and ranges you will be shooting with a rimfire.
If you really want a red dot, consider a conventional scope with an illuminated reticle.
http://swfa.com/Leupold-125-4x20-VX-...pe-P48030.aspx More than I'd pay, and a bit over your $400 budget, but a good scope.
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I understand that typically subsonic ammo is the most accurate? Is that true?
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Usually, but not always. My CZ shoots subsonic target ammo more accurately, but my Ruger 10-22's like the CCI Mini-mags better. At least better than the Wolf or Ely ammo that I shoot through the CZ. You'll just have to experiment with your rifle.