Sapphire Company Has the Following Data The Gross Profit Rate Is 40% and the Inventory at

Sapphire Company has the following data: $\begin{array}{lc}\text { Month } & \text { Budgeted Sales } \\\text { January } & \$ 108,000 \\\text { February } & 132000 \\\text { March } & 144,000 \\\text { April } & 120,000\end{array}$ The gross profit rate is 40% and the inventory at the end of December was $19,000. Desired inventory levels are 30% of next month's sales at cost. is the expected total purchases budgeted for February.

A) $105,120
B) $81,360
C) $79,200
D) None of these answers is correct.