For January, budgeted gross margin is

ACCOUNTING

Multiple Choice

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


Budgeted sales are $200,000 for January

Collections of sales are 50% in the month of sale and 50% the next month

Cost of goods sold averages 70% of sales

Merchandise purchases total $150,000 in January

Marketing costs are $3,000 each month

Distribution costs are $5,000 each month

Administrative costs are $10,000 each month


For January, budgeted gross margin is

a. $100,000

b. $140,000

c. $60,000

d. $50,000

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