Use the Information Below to Answer the Following Question(s)

Use the information below to answer the following question(s) .Boone Hobbies, a wholesaler, has a sales budget for next month of $600,000.Cost of units sold is expected to be 40 percent of sales.All units are paid for in the month following purchase.The beginning inventory of units is $20,000, and an ending amount of $24,000 is desired.Beginning accounts payable is $152,000.
-Boone Hobbies gross margin for next month is expected to be

A) $280,000.
B) $336,000.
C) $356,000.
D) $360,000.
E) $240,000.

Correct Answer:

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