Tall Oak, Inc. produces rulers from plastic resin. Tall Oak has estimated production and sales of rulers in units for the next 2 months as:

		May		June
Estimated production		42,000		48,000
Estimated sales		50,000		36,000

Each ruler requires 0.25 pounds of resin. The cost of resin is $4.50 per pound. Tall Oak wants to have 20% of the next month's materials requirements on hand at the end of each month.