[The following information applies to the questions displayed below/ Aztec Company sells its product for $160 per unit. Its actual and budgeted sales follow. Units Dollars April (actual) 3,500 $560.000 May (actual 2,200 352,000 6.000 960,000 June (budgeted) July (budgeted) 5.500 880,000 August (budgeted) 4.500 720.000 All sales are on credit. experience shows that 28%of credit sales is collected in the month of the sale, the after the sale. the second month after the sale, and 3% proves to be uncollectuble The product's purchase price is $110 per unit. are payable 11 Thus, purchases made in a month is pald in that month and the other 40% the next month. The company has a policy to maintain ending monthly Inventory of 19% the next month's unit sales plus a safety stock administrative The 30 31 actual Inventory are consistent with the year in cash. The expenses for the year are $1.248,000 and are paid evenly throughout company's minimum cash balance at month-end Is $120,000. This minimum is maintained, necessary, by borrowing cash from the bank. If the balance exceeds $120,000, the company repays as much of the loan as loan without the minimum. This type of loan carrles an annual 14% interest rate. On May 31, the balance $31,000, and the company's cash balance $120,000