QUESTION TWO FINANCIAL PROJECTIONS (20 Marks) Sunglass Hut specialises in manufacturing a particular brand of sunglasses. The following information has been extracted from their projected accounting records for 2020. Sunglasses are sold at a fixed price of R40 a pair The estimated sales volume is as follows: April, 9 000 units May, 7 000 units June, 8 000 units Management policy is to maintain a closing finished goods inventory each month at a level equal to 30% of the next months budgeted sales. To make one pair of sunglasses, 2.5 kg of raw material at R5 per kg is required. Other production costs per unit as at 31 March 2020 were as follows: Direct labour, R7 Factory overheads, RS With effect from 01 May 2020, the direct labour costs is expected to increase by 10% and the factory overheads by 5%. REQUIRED 2.1 Prepare a Production Schedule in units indicating the number of units that must be produced for May 2020. (6 marks) 2.2 Calculate the expected total cost of production for May 2020. (9 marks) 2.3 Calculate the expected cost of sales of sunglasses for May 2020