Modern Notes, Inc. had a $47,000 cash balance on May 1. The following information was also gathered:

● Half of all sales are on credit. Of the credit sales, 80% are collected in the same month, 10% are collected in the next month, and 10% are uncollectible.

● Sales for April were $100,000, and expected sales are $110,000 in May and $140,000 in June.

●  The company wishes to have half of next month's sales in units available at the end of each month.

● The gross margin percentage is 40%. Of the production costs, the depreciation expense (part of fixed overhead) is $5,000 per month.

● The selling and administrative costs (all variable) are $1.00 per unit.

● The unit sales price is $10 per unit sold.

● All the cash costs of production and the selling and administrative salaries are paid in the month incurred

a. How many units will be produced in May?

b. What is the budgeted ending cash balance as of May 31?