The necklaces cost the company $4 each. Purchases are paid for as follows: 50% in the month of purchase and the remaining 50% in the following month. All sales are on credit, with no discount, and payable within 15 days. The company has found, however, that only 20% of a months sales are collected by month-end. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible.The companys monthly selling and administrative expenses are given below: Variable: Sales commissions 4% of sales Fixed: Advertising $200,000 Rent 18,000 Wages and salaries 106,000 Utilities 7,000 Insurance 3,000 Depreciation 14,000.