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The following information pertains to the January operating budget for Brindabella Corporation, a retailer: Budgeted sales are $300 000 for January Collections of sales are
The following information pertains to the January operating budget for Brindabella Corporation, a retailer:
Budgeted sales are $300 000 for January
Collections of sales are 50% in the month of sale and 50% the next month
Cost of goods sold averages 70% of sales
Merchandise purchases total $250 000 in January
Marketing costs are $3000 each month
Distribution costs are $5000 each month
Administrative costs are $10 000 each month
For January, budgeted gross margin is:
A.$90 000.
B.$140 000.
C.$50 000.
D.$100 000.
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