exclusive franchise on the distribution of the necklaces, and sales have grown so rapidly over

the past few years that it has become necessary to add new members to the managemen

company has experienced a cash shortage. You have been given responsibility for all planning

starting April $1.$ You are anxious to make a favourable impression on the president and hanths,

Theled the information below.

The necklaces are sold to retailers for $$10$ each. Recent and forecasted sales in units are as follows:

The large buildup in sales before and during May is due to Mother's Day. Ending inventories should be equal to $40\%$ f the next month's sales in units.

The necklaces cost the company $$4$ each. Purchases are paid for as follows: $50\%$ in the month of purcese

no discount, and payable within $15$ days. The company has found, however, that only $20\%$ of a

month's sales are collected by month$-$end. An additional $70\%$ is collected in the following

month, and the remaining $10\%$ is collected in the second month following sale. Bad debts have been negligible.

The company's monthly selling and administrative expenses are given below:

Variable:

q$\mathrm{.}1$:

$\{\begin{array}{ccc}\text{:}& \text{T}\text{o}\text{t}\text{a}\text{l}\text{s}\text{a}\text{l}\text{e}\text{s}& \end{array}$

A schedule of expected cash disbursements for merchandise pruchases, by month and in total.

KNOCKOFFS UNLIMITED

April purchases

May purchases

June purchases