=+6. The Argent Company, wh ich makes and seIls a single product, is preparing a budget for the next three months. Because of possible seasonal fluctuations in sales, the company normally keeps finished stock at a level equal to 150% of the budgeted unit sales for the following month.

The budgeted costs and selling price for the product are as follows:

Selling price Raw material cost Direct labour cost Variable production overhead cost Fixed production overhead cost Selling and administration sales commission fixed costs f25 per unit f4 per unit f5 per unit f2 per unit f9000 per month f2 per unit sold f6000 per month