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Could you help on the following quesitons 6-16, 17, 18, 19: Requi 6-16 Sales budget, service setting. In 2009, McGrath & Sons, a small environmental-testing
Could you help on the following quesitons 6-16, 17, 18, 19:
Requi 6-16 Sales budget, service setting. In 2009, McGrath & Sons, a small environmental-testing firm, per- formed 11,000 radon tests for $250 each and 15,200 lead tests for $200 each. Because newer homes are being built with lead-free pipes, lead-testing volume is expected to decrease by 10% next year. However, awareness of radon-related health hazards is expected to result in a 5% increase in radon-test volume each vear in the near future. Jim McGrath feels that if he lowers his price for lead testing to $190 per test, he will have to face only a 5% decline in lead-test sales in 2010. 1. Prepare a 2010 sales budget for McGrath & Sons assuming that McGrath holds prices at 2009 levels. 2. Prepare a 2010 sales budget for McGrath & Sons assuming that McGrath lowers the price of a lead test to $190. Should McGrath lower the price of a lead test in 2010 if its goal is to maximize sales revenue? 6-17 Sales and production budget. The Mendez Company expects sales in 2010 of 200,000 units of serv- ing trays. Mendez's beginning inventory for 2010 is 15,000 trays; target ending inventory, 25,000 trays. Compute the number of trays budgeted for production in 2010. 6-18 Direct material budget. Inglenook Co. produces wine. The company expects to produce 2,500,000 two-liter bottles of Chablis in 2010. Inglenook purchases empty glass bottles from an outside vendor. Its target ending inventory of such bottles is 80,000; its beginning inventory is 50,000. For simplic- ty, ignore breakage. Compute the number of bottles to be purchased in 2010. b-19 Budgeting material purchases. The Mahoney Company has prepared a sales budget of 45,000 fin- Ished units for a three-month period. The company has an inventory of 16,000 units of finished goods on hand de December 31 and has a target finished goods inventory of 18,000 units at the end of the succeeding quarter
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