Production Budgeting Jim Seagal is the CEO of Seagal Monitor Company, a manufacturer of computer monitors.

Seagal manufactures three types of flat panel LCD computer monitors: 15-inch, 17-inch, and 19-inch. The sales projections (in units) for 2009 and the first quarter of 2010 are:

Beginning inventory for 15-inch, 17-inch, and 19-inch monitors are 1,300, 1,500, and 1,250, respectively. Seagal requires that half of the next quarter’s sales be maintained in inventory.
How many monitors must be manufactured for each quarter of 2009 to meet sales and inventory demand?

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15-inch 17-inch 19-inch First quarter, 2009 3,100 5,100 2,200 Second quarter, 2009 2,450 4,700 2,050 Third quarter, 2009 2,800 4,950 1,900 Fourth quarter, 2009 3,150 4,870 2,100 First quarter, 2010 2,850 5,150 2,000