The following information pertains to the January operating budget for Murphy Corporation, a retailer:

Budgeted sales are $208,000 for January

Collections of sales are 40% in the month of sale and 60% the next month

Cost of goods sold averages 61% of sales

Merchandise purchases total $155,000 in January

Marketing costs are $3,400 each month

Distribution costs are $5,500 each month

Administrative costs are $10,300 each month

For January, budgeted gross margin is ________.

A. $83,200

B. $81,120

C. $53,000

D. $126,880