Old Antique Store prepared the following budget information for the month of May:

Sales are budgeted at $378,000. All sales are on account and a provision for bad debts is made for each month at three percent of sales for the month.

Inventory was $95,000 on April 30; an inventory increase of $20,000 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 $59,000.

Depreciation for May is projected at $7,100.

Old Antique's budgeted operating income for May is:

$82,600, $86,100, $10,560, $30,560, or $37,660