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Sherry and John Enterprises are using the kaizen approach to budgeting for 2018. The budgeted income statement for January 2018 is as follows: $1,100,000 670,000 430,000 Sales (168,000 units) Less: Cost of goods sold Gross margin Operating expenses (includes $59,000 of fixed costs) Operating income 330,000 $100,000 Under the kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 3% per month. What is budgeted cost of goods sold for March 2018? A. $630,403 B. $690,100 C. $649,900 OD. $670,000