1. Stardust manufactures and sells two versions of outdoor wooden playsets. model A and model B4 The company expects to sell 6,500 model A playsets next year at an average sales price of $3,000, and 3,000 model B4 playsets for $5,000 each. The beginning inventory consists of 250 model A playsets and 100 model B4 playsets. This past year, company experienced inventory shortages and would like to increase the inventory of both models by 20%. FIFO is used for inventory flow.

Redwood is used to build each playset. Information for redwood is as follows:

Beginning inventory - feet	150,000 feet
Beginning inventory - $	$180,000
Required wood for model A	320 feet
Required wood for model B4	450 feet
Current cost per foot of redwood	$1.20 per foot
Targeting ending inventory feet	200,000 feet

Please Show the Work

1. What the number of model A and model B4 playsets budgeted for production?
2. How much redwood (feet and $) is required to be purchased during the coming year?
3. What is the impact on budgeted model A production if the sales price for model A is increased by 10% and sales are expected to decrease by 20% as a result?