27. The Merrymount Company has budgeted sales of $400,000 and budgeted cash receipts of $380,000 for the month of July. The company sells beach bags for $40 each. The Company has also budgeted inventory purchases of 10,500 units at a cost of $20 each. If the company incurred $125,000 of selling and administrative expenses during July, what is the companys budgeted operating income for the month of July?

A. $75,000

B. $65,000

C. $45,000

D. None of the above