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

• Sales are budgeted at $312,000. 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 $94,000 on April 30; an inventory increase of $21,000 is planned for May 31.
• All inventory is marked to sell at cost plus 50 percent.
• Estimated cash disbursements for selling and administrative expenses for the month are $58,000.
• Depreciation for May is projected at $7,000.

Old Antique's budgeted gross profit for May is:

Multiple Choice

• $104,000.

• $156,000.

• $211,000.

• $229,000.

• $208,000.