The production budget for cars for May (in units) is

a. 6,500

b. 11,000

c. 4,500

d. 10,100 Munch Enterprises makes a small toy car that is voice activated. Projected sales for the next four months are

The cars sell for \($35\) each. To produce each car requires \($12.50\) in direct materials and \($6.00\) in direct labour. Fixed overhead costs related to manufacturing the car are \($10,000\) per month, while variable overhead is \($4.50\) per car. Munch normally produces a month's supply of inventory to ensure that it will not fall short in case sales are unexpectedly high. At the end of March, for instance, the company will have inventory to cover April sales.

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Month April May Planned Sales (Units) 5,500 6,500 June 4,500 July 5,600