Answer the following questions using the information below:
The following information pertains to the January operating budget for Brindabella Corporation,a retailer:
Budgeted sales are $300 000 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 $250 000 in January
Marketing costs are $3000 each month
Distribution costs are $5000 each month
Administrative costs are $10 000 each month
-For January,budgeted net profit is:
A)$72 000.
B)$50 000.
C)$52 000.
D)$60 000.

Question

Quizplus · Accepted Answer

Net profit = Sales - Cost of goods sold - Marketing costs - Distribution costs - Administrative costs= $300,000 - (70% x $300,000) - $3,000 - $5,000 - $10,000= $300,000 - $210,000 - $18,000= $72,000

Answer the Following Questions Using the Information Below