WorldExplorer is a car manufacturer manufactures small sized cars. Their accountant have collected the cost data for the past 4 months in 2017. All the employees, except supervisors and admin staff, working on their production line is paid by number of working hours. According to the industry agreement with the union, there would be an increase on supervisor's salary in Dec 2017. Their delivery company-Punctual charged them a base rate and car handling cost for each car they delivered. The rental cost would also increase in Dec 2017. All cost changes happened in Dec 2017 will stay effective in the future.

The accountant of WorldExplorer also prepared a budget (displayed below) for the company for its operation from Jan 2018 to April 2018. The accountant advises you following points:

* Unit cost remain unchanged

* Manufacturing fixed and variable overhead costs are allocated based on number of production

*The company keeps 5% of each month's projected sales volume as the ending inventory

WorldExplorer's accountant noticed every month 50% cars are purchased by cash and another 50% is credit sale. Money for credit sales is collected in the following pattern. 60% of the credit sales amount will be collected in the month of sale, 37% will be collected in the following month and 3% is uncollectable. On the 1st of Jan, account receivable from Dec's sale is 4000000.

Using the information given, answer the following questions. Show your calculations.

1. what is the cost function for WorldExplorer?

2. If they would manufacture 2200 cars in Jan 2018, what is the total cost?

3. Prepare Cost of Goods Sold Budget for Feb 2018

Sep Oct Nov Dec Number of Cars Manufactured Raw Material Cost Administrition & Sales Direct Labor cost Supervisor Salary Product delivery Rent 2,000 14,000,000 13,500,00012,500,000 10,000,000 310,000 8,400,0008,100,000 7,500,000 6,000,000 22,000 320,000 250,000 2,800 2,700 2,500 314,000 313,500 302,500 20,000 328,000 200,000 20,000 327,000 200,000 20,000 315,000 200,000