Sherry and John Enterprises are using the kaizen approach to budgeting for 2018. The budgeted income statement for January 2018 is as follows: Sales (168,000 units) $ $1,050,000 Less: Cost of goods sold 640,000 Gross margin 410,000 Operating expenses (includes $ 53 comma 000$53,000 of fixed costs) 370,000 Operating income $40,000 Under the kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 22% per month. What is the budgeted operating income for March 2018?

What is the budgeted operating income for March 2018?

A. $77,897

B. $ 627,200

C. $363,660

D. $105,800