Jacobs pays all bills in the month incurred. All sales are on account with 50 percent collected the month of sale and the balance collected the following month. There are no sales discounts or bad debts. Jacobs desires to maintain an ending finished goods inventory equal to 20 percent of the following month's sales and a raw materials inventory equal to 10 percent of the following month's production. January 1, 2011, inventories are in line with these policies. Actual unit sales for December and budgeted unit sales for January, February, and March of 2011 are as follows: JACOBS INCORPORATED Sales Budget For the Months of January, February, and March 2011 Month December January February March Sales - Units 5,250 6,000 9,000 9,000 Sales - Dollars $262,500 $300,000 $450,000 $450,000