History Entertainment distributes a DVD which sells for $$12$ per unit. History pays $$7$ per unit to buy the product. Selling cost of $$1$ per unit is incurred to deliver the product to the customer. This is paid in cash when the product is sold.

History has $$50,000$ per month in fixed selling and administrative expenses $($including $$3,000$ in depreciation$),$ which are paid half in the month incurred and half in the next month.

It is History$$s policy to maintain an inventory at the end of each month equal to $30\%$ of the next month$$s projected cost of sales.

History makes $30\%$ of sales in cash, and the rest are on credit. Credit sales are collected in the month after sale. Budgeted monthly sales for the first five months of $2011$ are as follows:

January $20,000$ units

February $22,000$ units

March $26,000$ units

April $28,000$ units

May $40,000$ units