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

Karmee Company's total cash receipts for the month of April will be

A. $653,000

B. $629,000

C. $707,400

D. $504,000