TNR Is Preparing Its Budgeted Income Statement for the Month

Multiple Choice

TNR is preparing its budgeted income statement for the month of August. Budgeted sales are $18,000. Cost of goods sold is twice the amount of operating costs, and operating costs plus cost of goods sold equals 40% of net profit. Return on sales (net profit / sales) is anticipated to be 50%. TNR's budgeted operating costs are

A) $3,600
B) $2,400
C) $1,200
D) None of the above