MM Co. predicts sales of $38,000 for May. MM Co. pays a sales manager a monthly salary of $3,800 plus a commission of 8% of sales dollars. MM's production manager recently found a way to reduce the amount of packaging MM uses. As a result, MM's product will receive better placement on store shelves and thus May sales are predicted to increase by 10%. In addition, MM's shipping costs are predicted to decrease from 6% of sales to 5% of sales. Compute (1) budgeted sales and (2) budgeted selling expenses for May assuming MM switches to this more sustainable packaging. (1) Budgeted sales (2) Budgeted selling expenses Ruiz Co. provides the following sales forecast for the next four months. Sales (units) April 660 May 740 June 690 July 780 The company wants to end each month with ending finished goods inventory equal to 20% of next month's forecasted sales. Finished goods inventory on April 1 is 132 units. Prepare a production budget for the months of April, May, and June. RUIZ CO. Production Budget For April, May, and June April Next month's budgeted sales (units) 740 Ratio of inventory to future sales 20% May June 690 780 Required units of available production Units to be produced