Pierce Merchandising Company Expects to Purchase $60,000 of Materials in March

Multiple Choice

Pierce Merchandising Company expects to purchase $60,000 of materials in March and $70,000 of materials in April. Three-quarters of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase. In addition, a 2% discount is received for payments made in the month of purchase. How much will April's cash disbursements for materials purchases be?

A) $44,100
B) $54,100
C) $66,450
D) $60,000