Grapes of Wrath, Inc. packs, prepares, and distributes a variety of grape products,

including raisins, jelly, and juice, under private brands in the US$.$ The Vice$-$President

of Operations, Ms$.$ Camilla Azua, asked her executive team to meet with her to

discuss the products to prepare for the upcoming season. The grape crop, which

had been purchased during the previous accounting year, was beginning to arrive and

appropriate operations would have to be started in the next two weeks.

Mr$.$ Thomas, the Controller, and Ms$.$ Bollman, the Sales Manager, were the first to

arrive in Ms$.$ Azua$$s office. Rick Grimes, the Production VP$,$ came in a few minutes

later and said that he had picked up the produce inspection$$s latest estimate of the

quality of the incoming grapes. According to the report, $25\%$ of the crop was Grade

$$A$$ quality and the remaining portion of the $8,400,000-$pound crop was Grade $$B$.$

Azua asked Bollman about the demand for grape products for the coming year. Bollman replied that

they could sell all of the raisins they can produce. The expected demand for juice and jelly, on the other

hand, was limited$.$ The Sales Manager then passed around the latest demand forecast, which is shown in

Table $1.$ She reminded the group that the selling prices had been set in light of the long$-$term marketing

strategy of the company, and potential sales had been forecast at these prices.

Thomas, after looking at Bollman$$s estimates of demand, said that it looked like the company $$should do

quite well $($on the grape crop$)$ this year.$$ With the new accounting system that had been set up$,$ he had

$1$