a. b. Given the following information, prepare a quarterly sales budget and production budget, in units: Last year sales = 500,000 units. The organization is planning a 10 percent increase in sales for the year 2012. The company is a retail organization that sees higher sales due to the holidays in the 4th quarter. 40 percent of the sales occur in the 4th quarter and the remaining units are sold equally over the other three quarters. The beginning inventory for the year amounts to 20,000 units. The estimated sales for the first quarter of 2013 amount to 115,000 units. The company requires an ending inventory of 20 percent of the next quarters' sales. Given the schedules above, if the projected sales price is P50 per unit, what is the expected revenue per quarter? Also, given the following information, what is the estimated costs of production? Materials: Each unit requires 1 yard of fabric and 1/2 pound of fiberfill stuffing. Fabric can be purchased at P9.00 per yard and fiberfill sells for P4.00 per pound. Inventories of materials are listed as follows: Fabric/yds Fiberfill/lbs Qtr1 Qtr2 17,000 20,000 Qtr3 18,000 Qtr4 19,000 5,000 6,700 8,000 8,500 Beginning inventory of fabric is 16,000 yards and 6,000 lbs of fiberfill. It takes an estimated time of .25 hours to produce one unit of output. The labor cost per hour is P25 per hour and the taxes and benefit load is 25 percent.