Preparation of Individual Budgets During the first calendar quarter of 2016, Clinton Corporation is planning to manufacture a new product and introduce it in two regions. Market research indicates that sales will be 7,000 units in the urban region at a unit price of $53 and 6,000 units in the rural region at $48 each. Because the sales manager expects the product to catch on, he has asked for production sufficient to generate a 5,000-unit ending inventory. The production manager has furnished the following estimates related to manufacturing costs and operating expenses: Variable Fixed (per unit) (total) Manufacturing costs: Direct materials $12.60 9.30 7.50 A (4 lb. @ $3.15/lb.) B (2 lb. $4.65/lb.) Direct labor (0.5 hours per unit) Manufacturing overhead: Depreciation Factory supplies Supervisory salaries Other -$7,650 0.90 4,500 - 28,800 0.75 22,950 Operating expenses: Selling: Advertising Sales salaries & commissions* Other* 22,500 1.50 15,000 0.90 3,000 Administrative