The company sells many styles of shoes, but all are sold for the same price, i.e. $12 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of shoes):

\fVariable: Sales commissions 5% of sales Fixed: Advertising $210 000 Rent 22 000 Salaries 110 000 Utilities 8 000 Insurance 5 000 Depreciation 15 000Assets Cash $70 000 Accounts receivable 436 800 ($33 600 February sales, $403 200 March sales) Inventory 148 500 Prepaid insurance 25 200 Property and equipment (net) 903 500 Total assets $1 584 000 Liabilities and Stockholders' Equity Accounts payable $125 000 Dividends payable 15 000 Common stock 850 000 Retained earnings 594 000 Total liabilities and stockholders' equity $1 584 000A B C D E 1 Sales budget N April May June quarter 3 Budgeted unit sales 66000 100000 55000 221000 4 Selling price per unit 12 12 12 5 Total sales 792000 1200000 660000 2652000 6 7 Collection from customers 8 April May June Quarter 9 February sales 33600 10 March sales 352800 50400 11 April sales 158400 554400 79200 12 May sales 240000 840000 13 June sales 132000 14 Total cash collection $ 544,800.00 $ 844,800.00 $ 1,051,200.00 $ 2,440,800.00 1515 16 Mechandise purchases budget 17 April May June quarter 18 Budgeted unit sales 66000 100000 55000 19 End inventory 45000 24750 14400 20 Total unit needed 111000 124750 69400 21 Less: Beginning invetory units 29700 45000 24750 22 Units to be purchased 81300 79750 44650 23 Unit cost 5.00 5.00 un 5.00 24 Required dollar purchases S 406,500.00 $ 398,750.00 $ 223,250.00 $ 1,028,500.00