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10. Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for $475, and the S12L5 sells for $300. Projected sales
10. Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for $475, and the S12L5 sells for $300. Projected sales (number of speakers) for the coming five quarters are as follows: First quarter, 20X2 Second quarter, 20X2 Third quarter, 20X2 S12L7 800 2,200 5,600 S12L5 4,600 1,300 1,400 5,300 Fourth quarter, 20X2 First quarter, 20X3 900 1,200 The vice president of sales believes that the projected sales are realistic and can be achieved by the company. Required: (a) Prepare a sales budget for each quarter of 20X2 and for the year in total. Show sales by product and in total for each time period. (b) How will Stillwater Designs use this sales budget? Stillwater Designs needs a production budget for each product (representing the amount that must be outsourced to manufacturers located in Asia). Beginning inventory of S12L7 for the first quarter of 20X2 was 340 boxes. The company's policy is to have 20 percent of the next quarter's sales of S12L7 in ending inventory. Beginning inventory of S12L5 was 170 boxes. The company's policy is to have 30 percent of the next quarter's sales of S12LS in ending inventory. (c) Prepare a production budget for each quarter for 20X2 and for the year in total. 3,900
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