Direct Labor

Labor requires $12$ minutes per unit for completion and is paid at a rate of $$9$ per hour.

Selling and Administrative

Variable selling and administrative cost per unit is $$1\mathrm{.}50.$

Advertising $,$$$15,000$ a month

Insurance $$1,400$ a month

Salaries $,$$$70,000$ a month

Depreciation $$2,200$ a month

Other fixed costs $$2,800$ a month

Other Information

The Cash balance on December $31,2024,$ totaled $$103,000,$ but management has decided it would like to maintain a cash balance of

at least $$800,000$ beginning on January $31,2025.$ Dividends are paid each month at the rate of $$2\mathrm{.}30$ per share for $4,960$ shares

outstanding. The company has an open line of credit with Romney's Bank. The terms of the agreement requires borrowing to be in

$$1,000$ increments at $9\%$ interest. Waterways borrows on the first day of the month and repays on the last day of the month. A

$$510,000$ equipment purchase is planned for February.