The Gadget Company manufactures a wrist watch for spy agencies. The watch has a built-in cell phone, Geiger counter, compass, magnet and garroting wire. Sales are expected to commence in February and remain level at 10,000 units per month. The watch sells for $2 per unit. The raw materials for the product cost $1 per unit. Raw materials are purchased one month before the expected sales, and suppliers are paid one month after the purchase. Gadget's overhead expenses are $3,750 per month and depreciation is $250 per month. What are total cash outflows (disbursements) in May? Sales and Disbursements Forecast The Gadget Company April $20,000 May $20,000 June $20,000 Sales Forecast Purchases from Suppliers Payments to Suppliers General & Admin Expenses Depreciation Total Disbursements A. $10,000 OB. $13,850 OC. $13,750 OD. $20,000 OE. $12.950