1. Farhan, the CFO for Dubai Ltd., is preparing a forecast of inventory for the bank. Farhan has to prepare a three-month projection for July, August, and September, and has gathered the following information:
   • Projected unit sales: June 112,000; July 150,000; August 137,000; September 136,000
   • Production in units: July 148,700; August 136,900; September 136,400
   • Direct material cost per unit is $105.00. Direct materials are immediately used in production when received. Direct labour cost per unit is $56.00. Indirect costs are 26% of direct labour.
   • Opening inventory on July 1 consisted of 15,000 units.

The bank has agreed to loan the company up to 80% of the inventory balance outstanding. At the end of September, what is the maximum amount available to borrow from the bank under this agreement?

a) $ 70,224

b) $1,803,200

c) $1,966,272

d) $2,457,840