The Following Information Pertains to the January Operating Budget for Murphy

question 151

Multiple Choice

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 60% in the month of sale and 40% the next month
Cost of goods sold averages 64% of sales
Merchandise purchases total $154,000 in January
Marketing costs are $3,600 each month
Distribution costs are $5,000 each month
Administrative costs are $10,500 each month
For January, budgeted gross margin is ________.

• A) $124,800
• B) $133,120
• C) $74,880
• D) $54,000

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