Answer the Following Questions Using the Information Below

Answer the following questions using the information below:
Waseem Company provides the following data for next year:
The gross profit rate is 40% of sales. Inventory at the end of December is $21,600 and target ending inventory levels are 30% of next month's sales, stated at cost.
-Purchases budgeted for January total:

A) $130,800
B) $69,840
C) $74,160
D) $72,000