I need to answer 3 questions:

a. using a spreadsheet prepare the six monthly budget schedules that Cheryl suggested. As a general rule, Cheryl likes to have ending inventory equal to 12 percent of next months sales. assume that the company ended 2014 with an inventory of 1500 gallons of olive oil. in order to calculate ending inventory at the end of December 2015, assume that sales in January 2016 will be the same as December 2015 sales.

b. suppose that capacity is 12,000 gallons. is the company likely to encounter a capacity problem?

c. Abruzzi sells its oil for $25 per gallon. the variable cost per gallon is $10. what will be the annual impact on profit of obtaining the consolidated business assuming that there is no capacity problem?