A company manufactures and sells a single product. The following information is available for the period April to September year 9. Sales: The budgeted sales, in units are as follows: April May June July August September 960 1040 1080 1120 1120 1080 The standard selling price is RM12.50 per unit. 40% of the sales are expected to be cash sales with the remaining customers allowed one month's credit. It is estimated that 5% of credit customers will be bad debts. Production: The company manufactures 75% of the budgeted sales during the month before sale and remaining 25% in the month of sale. Costs: 1) Direct materials will be RM5 per unit of finished product. Materials will be purchased in the month prior to their use in production, and paid for in the month following purchase. 2) Direct labour will be paid at a rate of RM2 per unit of finished product, payable in the month of production. A bonus payment of RM1 per unit will be paid on all additional monthly production in excess of 1,000 units, paid in the month following production. 3) Fixed production overheads of RM20,000, including depreciation of RM6,800, are budgeted for the year ahead. These are budgeted to be the same each month and, apart from depreciation, are payable in the month they are incurred. 4) Variable selling expenses are expected to be RM1.50 per unit payable in the month of sale. 5) Fixed administration overheads of RM6,000 for the year ahead are budgeted to be the same per month and payables in the month they are incurred. Cash: The company expect to have a bank overdraft balance of RM2,500 at the start of May year 9