Brownsville Novelty Store Prepared the Following Budget Information for the Month

Brownsville Novelty Store prepared the following budget information for the month of May:
- Sales are budgeted at $360,000.All sales are on account and a provision for bad debts is made
Monthly at three percent of sales.
- Inventory was $84,000 on April 30 and an increase of $12,000 is planned for May 31.
- All inventory is marked to sell at cost plus fifty percent.
- Estimated cash disbursements for selling and administrative expenses for the month are $48,000.
-Depreciation for May is projected at $6,000.
Budgeted Gross Profit in May is:

A) $120,000.
B) $180,000.
C) $198,000.
D) $252,000.
E) $240,000.