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You have just been hired as a new management trainee by Earrings Unlimited, a distributer of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting, and at certain times of the year has experienced a shortage of cash.

Since you are well trained in budgeting, you have decided to prepare comprehensive budgets for the upcoming second quarter in order to show management the benefits that can be gained from an integrated budgeting program. To this end, you have worked with accounting and other areas to gather the information assembled below.

The company sells many styles of earrings, but all are sold for the same price, $10 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings):

January (actual)	20,000
February (actual)	26,000
March (actual)	40,000
April (budget)	65,000
May (budget)	100,000
June (budget)	50,000
July (budget)	30,000
August (budget)	28,000
September (budget)	25,000

The concentration of sales before and during May is due to Mother