Heller Company offers an unconditional return policy to its customers. During the current period, the company records total sales of $935,000 , with a cost of merchandise to Heller of $374,000 . Based on past experience, Heller Company expects 4% of sales to be returned. How much gross profit will Heller Company recognize for the current period?

Select one:

a. $897,600

b. $388,960

c. $538,560

d. $561,000

e. $935,000