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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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