January February March April May Estimated unit sales 11,000 11,900 8,100 8,300 9,000 Sales price per unit $50.2 $48.5 $48.5 $48.5 $48.5 Direct labor hours per unit 2.5 2.5 1.6 1.6 1.6 Wage per direct labor hour $7 $7 $7 $8 $8 Donnegal has a labor contract that calls for a wage increase to $8 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1. Donnegal expects to begin the year with 15,760 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following months sales, plus 40% of the second following months sales.