Brownsville Novelty Store prepared the following budget information for the month of May: Sales are budgeted at $413,000. All sales are on account and a provision for bad debts is made for each month at two percent of sales for the month. Inventory was $92,000 on April 30; an inventory increase of $14,000 is planned for May 31. All inventory is marked to sell at cost plus 40 percent. Estimated expense for selling and administrative expenses for the month are $56,000. Depreciation for May is projected at $6,800. Brownsville's budgeted operating income for May is:

A) $78,400. B) $76,800. C) $46,940. D) $53,740. E) $32,940.