Dex Industries Expects to Purchase $120000 of Materials in March

Multiple Choice

Dex Industries expects to purchase $120000 of materials in March and $140000 of materials in April. Three-fourths 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) $88200
B) $108200
C) $132900
D) $120000