A certain company's sales projection for the next year of operations will be 15,000 units. Currently, the company has 1,500 units in inventory. Understanding that this is a lot of inventory, it plans to reduce its ending inventory for the next year of operations to 60% of the current amount.

On the other hand, it wants to project its conversion costs for next year and plans how to reduce them. Currently, they represent an average of $55/unit to be produced, of which 40% represents direct labor.

Required

1) Production budget in units

2) Direct labor cost budget.

3) Describe what data you would need to construct the raw material budget in this case.