The sunflower inc makes and sells tasty hamburgers for 8

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The Sunflower, Inc makes and sells tasty hamburgers for $8 per unit with a unit variable cost of $6. All sales are for cash and the variable costs are paid immediately. The company has budgeted the following data for November.

Sales 20000 units
Cash,Beginning Balance

$34,000

Selling and administratie(of which depreciation $5,000) $53,000
Required minimum cash balance $33,000

if necessary, the company will borrow cash from a bank on the first day of November. Assume that the borrowing can be made in any (exact) amount, but bears interest at 2% per month. The November interest will be paid in cash during November. What is the closest amount of cash that must be borrowed on November 1 to cover all cash disbursements and to obtain the desired November 30 cash balance.

Reference no: EM13580050

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