Lugo Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $25. Lugo projects sales for April will be 2,500 packages, with sales increasing by 250 packages per month for May, June, and July. On April 1, Lugo has 250 packages on hand but desires to maintain an ending inventory of 10% of the next month's sales. Prepare a sales budget and a production budget for Lugo for April, May, and June. May June Total Now prepare a production budget for April, May, and June. Lugo Company Production Budget April, May, and June April Budgeted packages to be sold 2,500 Plus: Desired packages in ending inventory Total packages needed Less: Packages in beginning inventory Budgeted packages to be produced 2.750 3,000 8,250