1. A company in the region has projected sales of 15,500 16,200 and 15,800 units for the second quarter of year 2021. In order to produce a unit of final product three raw materials are used X,Y and Z in the ratio of 1.5: 0.8: 1.2 kgs respectively. The prices are specified by an annual contract and stand at ksh 15, 22 and 18 per kg respectively. As a policy the organization maintains a buffer stock of 6,000 units and it is estimated that by the close of the first quarter there will be 4500 units in stock. Process losses amount to 500 units per month. Labor requirement is 3.5 hours per unit with a current rate of ksh 50 per hour though it is likely to go up by 10% in the second quarter. Production overheads are based on labor hour and are absorbed at 10 shs per hour.

The other relevant information is as follows

Details	1	2	3
Selling prices/ Unit	220	216	225
Budgeted organizational Overheads	102,500	98,500	106,780

Required: Prepare a projection of budgeted profit in the second quarter