Karmee Company has been accumulating operating data in order to prepare an annual profit plan. Details regarding Karmee's sales for the first 6 months of the coming year are as follows:

Estimated              Type of

Month

Monthly Sales        Monthly Sale

January       $600,000

February       650,000

All Months:

March          700,000

Cash sales 20%

April           625,000

Credit sales 80%

May            720,000

June           800,000

Collection Pattern for Credit Sales

Month of sale                   30%

One month following sale       40%

Second month following sale    25%

Karmee's cost of goods sold averages 40% of the sales value. Karmee's objective is to maintain a target inventory equal to 30% of the next month's sales in units. Purchases of merchandise for resale are paid for in the month following the sale. The variable operating expenses (other than cost of goods sold) for Karmee are 10% of sales and are paid for in the month following the sale. The annual fixed operating expenses are presented below. All of these are incurred uniformly throughout the year and paid monthly except for insurance and property taxes. Insurance is paid quarterly in January, April, July, and October. Property taxes are paid twice a year in April and October.

Annual Fixed Operating Costs

Advertising      $720,000

Depreciation      420,000

Insurance         180,000

Property taxes    240,000

Salaries         1,080,000

The total cash disbursements that Karmee Company will make for the operating expenses (expenses other than the cost of goods sold) during the month of April will be

A. $290,000

B. $420,000

C. $385,000

D. $255,000