Company Simple Laminates brothers Inc. is producing impregnated papers for the furniture industry. Following information of the parts of the product. Material base Product Plastic Melamine Phenol Pallets Paper Melamine resin Phenolic resin Packaging cost per 4500 Melamine Phenol Impregnated paper som product product units cost per kg cost per sqm 70gr 3 0,21 0,21 70gr 0 2 , 25 0 ,1575 658 2,15 0,13975 1 5 0 90 0,02 0,018 Direct Material 0,3875 0,36775 In order to produce the products, the company has 6 direct employees per shift preparing impregnated papers at an annual cost of 30.000 per employee. The employees have a working schedule of 1750 hours per year. The production site works with a 3-shift schedule, 24 hours per day. To coordinate the production we have a foreman, with a total annual cost of 50.000 per year. If there is a need for more direct labor the company has the chance to use overtime with the existing employees at actual cost per hour with an increase of 50%. The production facility has two production lines operated by 3 employees each at the same time. The company pays a rent for the production hall of 5.000 per month, and the utilities expenses are expected to be of 500 per month, fixed and a variable cost of 0,005 per sqm. The sales organization has one customer service with an annual cost of 33.500, and the support of an external agent that takes a 5% commission over sales. The administration of the company has two persons in the accounting department, with an annual cost of 25.000 each. The machines run at 50 linear meters per minute, and the product has a width of 2 meters. Our quarterly sales budget for 2019 is: 2019 Q3 Q4 Total Unit sales melamine Unit sales phenol 7.776.000 7.698.240 11.289.600 1.140.250 11.016.000 10.795.680 741.600 7 63.848 30.823.200 20.398.018 The sales price for melamine products is 45cents, and the price for the phenolic is 40 cents. This is the production calendar that the company has agreed with its union. distribution % of sales Production days according to calendar 2019 03 01 02 04 Total 218,75 65 70 65 18,75 1.- Prepare a Quarterly budget for the year 2019, taking into consideration that you have to prepare first a production scheduling. Beginning inventory is 1.000.000 units, and the desired ending inventory for the end of the first Q 900.000, at the end of the Q2 800.000, at the end of Q3 600.000 and 1.000.000 at the end of the year 2019. The company has an agreement with the unions that allows them to use overtime on every month that they have a lack of capacity to fulfill the market demand