Brownsville Novelty Store Prepared the Following Budget Information for the Month

question 58

Multiple Choice

Brownsville Novelty Store prepared the following budget information for the month of May:

Sales are budgeted at $360,000. All sales are on account and a provision for bad debts is made for each month at three percent of sales for the month.
Inventory was $84,000 on April 30; an inventory increase of $12,000 is planned for May 31.
All inventory is marked to sell at cost plus 50 percent.
Estimated expense for selling and administrative expenses for the month are $48,000.
Depreciation for May is projected at $6,000.

Brownsville's budgeted operating income for May is:

• A) $72,000.
• B) $66,000.
• C) $55,200.
• D) $61,200.
• E) $43,200.

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Definitions:

Oxidation

A chemical process involving the loss of electrons or an increase in oxidation state by a molecule, atom, or ion.

Chromium

A chemical element with symbol Cr and atomic number 24, known for its high corrosion resistance and hardness.

Organic Product

Compounds primarily composed of carbon atoms, resulting from the synthesis in organic chemistry.

Major Structure

Refers to the principal arrangement or configuration of atoms within a molecule, often determining its chemical behavior.