please answer all of the questions.

1. Shah Incorporated manufactures a product with a selling price of S50 per unit. Units and monthly cost data follow: (20 points) Variable . ._ _ _ . . . . $ S 0.4 per unit sold Direct materials . . . . . . . . . . . . . . . . . . . . . .. 10 per unit manufactured .10 per unit manufactured .. _- . _ . . 5 per unit manufactured Direct labor. . . ixed: $15,000 per month Manufacturing (including depreciation of $10,000)30,000 per month The company pays 75% of the bills in the month incurred and 25% in the following month. 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 The company 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, 2018, inventories are in line with these policies Actual unit sales for December and budgeted unit sales for January, February, and March of 2018 are as follows SHAH INCORPORATED Sales Budget For the Months of January, February, and March 2018 Month Sales-Units Sales-Dollars Feb Mar 8,000 Dec an 6,250 5,000 10,000 S312,500 $250,000 $500,000 $400,000 Additional information: The January 1 beginning cash is projected as $5,000. For the purpose of operational budgeting, units in the January 1 inventory of finished goods are valued at variable manufacturing cost. Each unit of finished product requires one unit of raw materials. SHAH intends to pay a cash dividend of $10,000 in January Required - 20 points 1. A production budget for January and February. 2. A purchases budget in units for January 3. A manufacturing cost budget for January. 4. A cash budget for January. 5. A budgeted contribution income statement for January. 6. Management is concerned that their supplier of raw materials will have a strike. Determine the budget implications if management plans to increase the January end raw materials inventory to 100 percent of February's production needs. Offer any recommendations you believe appropriate