Boone Hobbies, a wholesaler, has a sales budget for next month of $600,000. Cost of units sold is expected to be 40 percent of sales. All units are paid for in the month following purchase. The beginning inventory of units is $20,000, and an ending amount of $24,000 is desired. Beginning accounts payable is $152,000.

Boone Hobbies gross margin for next month is expected to be

A.

$240,000.

B.

$280,000.

C.

$336,000.

D.

$356,000.

E.

$360,000.