RyRy, Inc. manufactures dance apparel. Unit sales projections for the first five months of the upcoming year are asfollows:

Month	Unit Sales
January	3,600
February	3,800
March	3,300
April	4,900
May	5,000

Beginning finished goods inventory consisted of 850units. The desired inventory of units at the end of each month in the upcoming year should equal25% of the followingmonths budgeted unit sales.

Each unit requires 22yards of fabric. The company wants to have20% of the fabric required for the nextmonths expected production on hand at the end of each month. This inventory requirement was met at the end of the previous year. The fabric costs$0.20 per yard.