Preparation of Individual Budgets During the first calendar quarter of 2016, Williams Corporation is planning to manufacture a new product and introduce it in two regions. Market research indicates that sales will be 9,000 units in the urban region at a unit price of $65 and 7,000 units in the rural region at $55 each. Because the sales manager expects the product to catch on, she 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: Manufacturing costs: Direct materials Variable Fixed (per unit) (total) A (2 lb. @ $2.50/lb.) $5.00 B (5 lb. @ $1.40/lb.) 7.00 Direct labor (2 hours per unit) 10.00 Manufacturing overhead Depreciation $22,500 Factory supplies 0.55 2,500 Supervisory salaries - 16,250 Other 0.65 9,200 Operating expenses: Selling: Advertising 12,500 Sales salaries& commissions* 1.25 20,000 Other 0.50 4,200 Administrative Office salaries Supplies Other - 15,000 0.40 1,200 0.25 5,000 *Varies per unit sold, not per unit produced.