42.

Memphis Company's May sales budget calls for sales of $1,000,000. The store expects to begin May with $60,000 of inventory and to end the month with $65,000 of inventory. Gross margin is typically 40% of sales. Compute the budgeted cost of merchandise purchases for May.

$595,000.

$605,000.

$600,000.

$400,000.

$405,000.