The following information pertains to the January

operating budget for Canniba Corporation, a retailer:

Budgeted sales are $200,000 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 $150,000 in January Marketing costs are

$3,000 each month Distribution costs are $5,000 each month Administrative costs

are $10,000 each month

QUESTION26. For January, budgeted gross margin is: