Reference no: EM132948229

Question - The following information pertains to the January operating budget for Brindabella Corporation, a retailer:

Budgeted sales are $300 000 for January

Collections of sales are 50% in the month of sale and 50% the next month

Cost of goods sold averages 70% of sales

Merchandise purchases total $250 000 in January

Marketing costs are $3000 each month

Distribution costs are $5000 each month

Administrative costs are $10 000 each month

For January, determine the budgeted gross margin?

A. $90,000.

B. $140,000.

C. $50,000.

D. $100,000.