6. Bos Burgers currently produces and sells 12,000 burgers per months with the following costs:

Variable costs $2.40 per unit

Fixed costs $60,000

Bo has recently switched food suppliers and anticipates that variable costs will decrease by $0.35 per unit. In addition , Bo has renegotiated his store lease and fixed costs will be dropping by $8,000 per month.

Bo anticipates selling 12,300 burgers during the month of July What will be his estimated total cost during July ?

9. Trenton Company has budgeted the following unit sales:

2014 2015

Quarter Units Quarter Units

1 140,000 1 125,000

2 80,000

3 100,000

4 160,000

The finished goods inventory on hand on December 31, 2013 was 28,000 units. It is the companys policy to maintain a finished goods inventory at the end of each quarter equal 20% of the next quarters anticipated sales.

Instructions: Prepare a production budget for 2014.