Farhan, the CFO for Dubai Ltd., is preparing a forecast of inventory for the bank. Farhan has to prepare a three-month projection for July, August, and September, and has gathered the following information:

• Projected unit sales: June 112,000; July 150,000; August 137,000; September 136,000
• Production in units: July 148,700; August 136,900; September 136,400
• Direct material cost per unit is $105.00. Direct materials are immediately used in production when received. Direct labour cost per unit is $56.00. Indirect costs are 26% of direct labour.
• Opening inventory on July 1 consisted of 15,000 units.

The bank has agreed to loan the company up to 80% of the inventory balance outstanding. At the end of September, what is the maximum amount available to borrow from the bank under this agreement?

Question 4 options:

	$70,224
	$1,803,200
	$1,966,272
	$2,457,840