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

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Accounting

The following information pertains to the January operating budget for Murphy Corporation, a retailer:
Budgeted sales are $206,000 for January
Collections of sales are 50% in the month of sale and 50% the next month
Cost of goods sold averages 61% of sales
Merchandise purchases total $160,000 in January
Marketing costs are $3,600 each month
Distribution costs are $6,000 each month
Administrative costs are $10,000 each month
For January, budgeted gross margin is
A. $46,000
B. $80,340
C. $125,660
D. $103,000
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