Managerial accounting question

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 company's budgeted operating income for the month of July? A. $75,000 B. $65,000 C. $45,000 D. None of the above