Knockoffs Unlimited, a nationwide distributor of low$-$cost imitation designer necklaces, has an exclusive franchise on the distribution of the necklaces, and sales have grown so rapidly over the past few years that it has become necessary to add new members to the management team. To date, the company's budgeting practices have been inferior, and, at times, the company has experienced a cash shortage. You have been given responsibility for all planning and budgeting. Your first assignment is to prepare a master budget for the next three months, starting April $1.$ You are anxious to make a favourable impression on the president and have assembled the information below.

The necklaces are sold to retailers for $$10$ each. Recent and forecasted sales in units are as follows:

$\backslash$table$[[$January$,($actual$),21,000,$June,$52,000,],[$February$,($actual$),28,000,$July,$32,000,],[$March$,($actual$),41,000,$August,$30,000,],[$April$,,67,000,$September,$27,000,],[$May$,,101,000,,,]]$

The large buildup in sales before and during May is due to Mother's Day. Ending inventories should be equal to $40\%$ of the next month's sales in units.

The necklaces cost the company $$4$ each. Purchases are paid for as follows: $50\%$ in the month of purchase and the remaining $50\%$ in the following month. All sales are on credit, with no discount, and payable within $15$ days. The company has found, however, that only $20\%$ of a month's sales are collected by month$-$end. An additional $70\%$ is collected in the following month, and the remaining $10\%$ is collected in the second month following sale. Bad debts have been negligible.

The company's monthly selling and administrative expenses are given below:

$\backslash$table$[[$IVariable:$,,],[$Sales commissions,$4\%,$of sales$],[$Fixed:$,,],[$Advertising$,,$$$206,000$