a) Simmon's policy is to keep 20% of next months sales in ending inventory. If sales in April are expected to be 5,800 units, and sales in May are expected to be 8,000 units, how many units should be produced in April?

b) Roys Restaurant compares monthly operating results with a static budget prepared at the beginning of the year. When actual sales are less than budget, would the restaurant usually report favourable variances on variable food costs and fixed supervisory salaries?

Food Costs	Supervisory Salaries
A	Yes	No
B	Yes	Yes
C	No	Yes
D	No	No