Suppose you are in charge of Collegiate Apparel's budgeting process. The sales manager has just informed Decision you that the sales forecast has been increased by 20 percent during each quarter of 20x1 and the first quarter MEV Clg of 20x2.

a. Revise Collegiate’s production budget for 20x1. Assume that the expected finished-goods inventory on January 1, 20x1,.is still 1,500 units.

b. Now put yourself in the position of Collegiate’s production supervisor. If the sales manager said she was only somewhat confident in the increased sales forecast, would you recommend increasing production to the levels in your revised budget? Why?