The Carlquist Company makes and sells a product called Product K. Each unit of

The Carlquist Company makes and sells a product called Product K. Each unit of Product K sells for $40 dollars and has a unit variable cost of
$34. The company has budgeted the following data for November:

If necessary the company will borrow cash from a bank. The borrowing will be in multiples of $1000 and will bear interest at 2% per month.
All borrowing will take place at the beginning of the month. The November interest will be paid in cash during November.

The amount of cash needed to be borrowed on November 1 to cover all cash disbursements and to obtain the desired November 30 cash balance is: