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.