IDS Ltd, who are a major sports equipment manufacturer, have resid and tested a new trail running shoe. Te aageent are now launch of the new shoe over a six month periood As the Project Manager for the development of then oduct you io and collated the following sales and cost information for the a Expected sales are: Month Number of shoes January February March April May June 200 200 260 300 350 400 The projected selling price is 40. All sales are expected to be on credit and customers are to pay following the month of sale. b each month is based on expected sales. It is The number of shoes produced planned to keep inventory levels constant at their current leve period. Each pair of shoes requires 0.2 kg of raw materials, which costs 10 per kg. All purchases of materials are on credit and suppliers are to be paid in the second month following the month of purchase. d To produce one pair of shoes requires two hours of direct labour at 6 per hour. e Variable production overheads are to be charged at the rate of 2 per unit (pair of f Fixed monthly production overheads are as follows: Wages are paid in the month the shoes are produced. shoes) produced. These are to be paid in the month the units are produced. Rent and rates Insurance Heat and light Depreciation Other 1,000 400 800 200 250 These are to be paid in the month the units are produced