A business sells a product at a price of $20. The product has a cost of $15. It's the end of the month and the business has $1,000 of raw materials remaining in inventory. The business estimates it will sell 500 units of the product next month and wants to purchase enough raw materials to cover estimated sales and to build an additional 100 units if sales are stronger than anticipated. How much should the business budget for materials purchases next month? Answer.